The Hong Kong Exchanges and Clearing Limited (HKEX), a firm operating a variety of markets – from equity and commodity to fixed income and currency, has revealed a forward-thinking equities settlement acceleration platform, Synapse. By leveraging smart contracts programmed in DAML, Synapse aims to streamline post-trade activities while boosting operational efficiency.
Further enhancing its reach, Synapse will be incorporated into Stock Connect, an HKEX’s arm that enables cross-border investment in over 1,000 mainland Chinese stocks via Hong Kong. Glenda So, HKEX Group Head of Emerging Business and FIC, noted that Synapse, powered by advanced technology, is poised to improve post-trade efficiencies and, over time, aid in building a more robust ecosystem, thereby supporting both market and investor growth strategies.
HKEX cited the exceptional performance of its Stock Connect platform, with the average daily turnover reaching RMB 109.3 billion in H1/2023, a 5% YoY rise and a significant 50% surge since 2020.
The next move by HKEX? A planned connection with Hong Kong’s Depository Trust and Clearing Corporation. This integration will facilitate centralized matching of cross-border transactions and largely automate trade confirmation workflow.
However, amid these promising developments, some challenges have been encountered. Recently, Hong Kong was shaken by the largest Ponzi scheme in its history—embezzlement of approximately $166 million from JPEX crypto exchange users. This raised concerns among industry analysts and experts, with fears that such incidents could deter virtual asset companies and impede the government’s efforts to expand the sector.
Cyrus Ip, a crypto venture investor, remarks, “At a time when people still don’t fully grasp what Web3 is, the JPEX case has undoubtedly painted a negative picture of digital assets and the broader Web3 industry for people in Hong Kong.”
Nevertheless, with the scheduled launch of the Synapse platform in Hong Kong on October 9, it is clear the spirited drive towards a secure, efficient, and evolved digital financial world remains unabated. While the journey may involve hurdles, advancements like Synapse showcase the transformative potential of blockchain technology.
Source: Cryptonews
