HKEX to Launch Settlement Acceleration Platform Synapse
Hong Kong Exchanges and Clearing Limited (HKEX), one of the world's major exchange groups, is planning to launch a new settlement acceleration platform—HKEX Synapse for its landmark Stock Connect programme.
In an official press release, the exchange announced that it is partnering with The Depository Trust & Clearing Corporation (DTCC) to link HKEX Synapse to DTCC's Institutional Trade Processing (ITP) services. With this integration, global investors and HKEX participants will be able to take advantage of the benefits of central matching of cross-border transactions on the Synapse platform, automating the trade confirmation and settlement notification process. Digital Asset has been selected as the vendor to develop HKEX Synapse.
Furthermore, the platform will standardise and streamline the post-trade workflows of Northbound Stock Connect, maximising efficiencies for market participants in a transparent, secure and reliable manner with DAML smart contracts.
HKEX Synapse will also help institutional investors participating in Northbound Stock Connect to better manage their post-trade operations across different time zones, in particular with regard to adhering to the Mainland securities market's T+0 settlement cycle.
“Synapse is our latest Stock Connect innovation and will be of major benefit to global investors when they trade through Northbound Stock Connect. Embracing new technology to further develop our markets is a cornerstone of our strategy and we are delighted to work together with DTCC and Digital Asset on this exciting new enhancement to our landmark mutual access programme with Mainland China,” said Charles Li, HKEX Chief Executive.
Upon launch, HKEX Synapse will extend Northbound Stock Connect's global reach via DTCC's ITP services, currently used by more than 6,000 clients across 52 markets globally, further realising the potential of Stock Connect for China's A-share market.
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