Hong Kong Exchanges and Clearing Limited (HKEX) announced the launch of Synapse, a platform for accelerating settlements on equity. The platform has been integrated into the Stock Connect, a channel for international investors that allows them to access more than 1,000 mainland businesses Chinese Stocks through routing in Hong Kong.
Glenda So, HKEX Group Head, said, “This technology-empowered platform will not only improve post-trade efficiencies, but will, over time, build a better, stronger ecosystem, supporting both market growth and investor growth strategies.”
Synapse has been performing extremely well, with the Northbound Stock Connect averaging RMB 109.3 Billion in daily turnover for the first half of 2023; a 5% rise compared to last year and a 50% increase from 2020 levels.
In addition to its equity, commodity and fixed income markets, as well as currency markets, HKEX will create a link between the Depository Trust and Clearing Corporation (DTCC) and its Institutional Trade Processing Service to facilitate centralized matching for cross-border transactions. This integration of the two systems will automate settlement instructions and their transmission.
The Synapse Platform for streamlining the Trade Confirmation Workflow is planned to launch on October 9.
However, Hong Kong has recently had to face challenges, such as the JPEX case, the largest ever fraud scheme in the city, involving the embezzlement of approximately $166,000,000. The investigation is ongoing and industry experts have voiced concern that the fallout from the JPEX debacle will present significant challenges for Web3 companies and hinder the government’s efforts to expand the sector.
Cyrus Ip, Chief Business Officer at DreamWld Technology, said, “At a time when people still don’t completely understand what Web3 is, the JPEX case has created a negative impression for people in Hong Kong on digital assets and the broader Web3 industry.”
