HKEX Unveils 'Synapse', Enhancing Equities Settlement Amid Crypto Scandal
Summary:
Hong Kong Exchanges and Clearing Limited (HKEX) introduces Synapse, a platform designed to expedite equities settlements using smart contracts. Synapse is incorporated with Stock Connect, facilitating international investors to access Chinese stocks via Hong Kong. HKEX also collaborates with the Depository Trust & Clearing Corporation to regulate cross-border trades. Amid Hong Kong's emergence as a Web3 hub, HKEX's launch coincides with a significant Ponzi scheme surfacing with JPEX crypto exchange.
The company managing the Hong Kong Stock Exchange, Future Exchange, and the London Metal Exchange, Hong Kong Exchanges and Clearing Limited (HKEX), is rolling out a cutting-edge platform for quicker equities settlement, named "Synapse". As reported on October 4th, the new platform will leverage smart contracts in the DAML programming language to facilitate post-trade processes and boost operational performance. Synapse will be integrated with Stock Connect, an HKEX avenue that offers international investors access to over 1,000 stocks from Mainland China via Hong Kong intermediation. According to the developers, the average daily Northbound Stock Connect turnover rose by 5% from last year, reaching RMB109.3 billion in the first half of 2023, a 50% increase from 2020.
HKEX will connect to the Depository Trust & Clearing Corporation (DTCC) of Hong Kong through its Institutional Trade Processing (ITP) service for centralized matching of cross-border trades. This connection automatically creates and sends settlement instructions back to Synapse, optimizing the confirmation processes for trades.
With tacit approval from China's central government, Hong Kong is rapidly evolving into a focal point for Web3 companies, following the inauguration of retail trading for licensed crypto exchanges in August. During the same period, however, Hong Kong also witnessed its largest-ever Ponzi scheme, with an estimated embezzlement of $166 million in users' funds from the JPEX crypto exchange. This case is still under investigation.
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Published At
10/4/2023 6:45:00 PM
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