The Hong Kong Stock Exchange (HKEX) has introduced an innovative equities settlement acceleration platform named “Synapse.”
On October 4, it was announced that this new platform utilizes smart contracts developed in the DAML programming language. These smart contracts are designed to enhance post-trade processes and significantly improve operational efficiency.
Furthermore, Synapse is set to operate within Stock Connect, a platform provided by HKEX. This platform serves as a gateway for international investors to trade in over 1,000 mainland Chinese stocks through Hong Kong channels.
Hong Kong Stock Exchange: 2023 Overview
Notably, during the first half of 2023, the Northbound Stock Connect reported an average daily turnover of RMB109.3 billion. This represents a 5% uptick from the preceding year and a substantial 50% surge from the levels recorded in 2020, as reported by HKEX.
Additionally, to ensure smooth cross-border transactions, HKEX is planning to establish a connection with Hong Kong’s Depository Trust and Clearing Corporation via its Institutional Trade Processing service.
Through this connection, transactions will be centrally matched, and settlement instructions will be automatically generated. Moreover, these instructions will then be transmitted back to the Synapse platform, streamlining the trade confirmation workflow.
However, it’s important to highlight that Hong Kong is quickly becoming a hub for Web3 companies. In August, the city saw the introduction of retail trading for licensed cryptocurrency exchanges.
However, amidst this development, Hong Kong also confronted its largest Ponzi scheme. The JPEX cryptocurrency exchange is alleged to have embezzled approximately $166 million in users’ funds. Currently, an ongoing investigation is looking into this matter.