Hong Kong Exchanges and Clearing Limited (HKEX), a publicly traded market operator, is set to unveil HKEX Synapse, a blockchain-powered settlement platform.
This initiative aims to enhance operational efficiency, reduce settlement risks, and increase transparency within post-trade workflows through the application of smart contracts.
HKEX Synapse is a pivotal component of the Stock Connect program, facilitating connectivity between Hong Kong and mainland China’s markets.
It leverages on the open-source smart contract language DAML, enabling data synchronisation across blockchains and centralised databases.
Scheduled to debut on October 9, HKEX Synapse supports HKEX goals of advancing Stock Connect, an channel for investors in the Mainland China and Hong Kong capital markets.
Recent improvements to Stock Connect include the incorporation of up to 10 additional trading days per year and the inclusion of over 1,000 mainland Chinese stocks accessible to international investors through Northbound Stock Connect.
Glenda So, HKEX Group Head of Emerging Business and FIC, 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. “