Let’s go through how enterprises are adopting blockchain in the fast-paced world.
Recently Hong Kong Exchanges (HKEX) launched Synapse, a settlement acceleration platform for stock connect.
The launch of HKEX Synapse, a new integrated settlement acceleration platform that makes use of cutting-edge technology to increase market efficiency and transparency, is something Hong Kong Exchanges and Clearing Limited (HKEX) has announced recently. With Synapse, Stock Connect — a special mutual market access program that links Hong Kong and Mainland China’s markets — has reached a new level of development. Launched on October 9, 2023, Synapse will use DAML smart contracts to standardise and optimise post-trade operations, improving transparency and operational efficiency while lowering settlement risks.
As part of its continuous efforts to improve Stock Connect — the effective, affordable, and easily accessible conduit for investors taking part in the capital markets in Hong Kong and Mainland China — Synapse is a product of HKEX.
In addition, over 1,000 new equities listed in Mainland China that are available to foreign investors through Northbound Stock Connect have been added to Stock Connect, along with the ability to have up to 10 Stock Connect trading days annually.
All market players can view real-time settlement process insights and visibility thanks to HKEX Synapse’s elimination of sequential processes. Enhancements in scalability and real-time data synchronization will enable asset managers, brokers, custodians, and clearing participants to manage the increasing number of trades made through Northbound Stock Connect. Up 5% from the previous year and 50% from 2020 levels, Northbound Stock Connect’s average daily turnover in the first half of 2023 was RMB 109.3 billion.
“We are delighted to launch HKEX Synapse, a major enhancement to our Stock Connect infrastructure that will support the next phase of growth for international participation in Mainland China’s equity markets,” said Glenda So, Head of Emerging Business and FIC at HKEX Group. In addition to increasing post-trade efficiencies, this technologically advanced platform will eventually strengthen and improve the ecosystem, hence facilitating investor and market growth strategies.
HKEX Synapse, an optional service, will assist institutional investors taking part in Northbound Stock Connect in more effectively managing their post-trade operations across time zones.
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