Hong Kong Exchanges and Clearing Limited (HKEX) has introduced its cutting-edge equities settlement acceleration platform, “Synapse,” creating surges in the financial world. Synapse harnesses smart contracts, coded in the powerful DAML programming language, to optimize post-trade processes, significantly enhancing operational efficiency.
This announcement, made on October 4, marks a significant leap forward in the global financial landscape.
Synapse Revolutionizes Stock Connect
Synapse takes center stage on Stock Connect, the HKEX channel that seamlessly connects international investors to trade over 1,000 mainland Chinese stocks through Hong Kong. The Northbound Stock Connect, in particular, has recorded an impressive 5% year-on-year increase in average daily turnover during the first half of 2023. This marks an astounding 50% growth compared to 2020 levels, illustrating Stock Connect’s growing global importance, as emphasized by HKEX.
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HKEX has solidified its connection with Hong Kong’s Depository Trust and Clearing Corporation through its Institutional Trade Processing service. This strategic alliance enables centralized matching of cross-border transactions, streamlining trade confirmation workflows, and fostering greater efficiency in the financial ecosystem.
Hong Kong’s Emergence in the Crypto Landscape
Hong Kong is not just a traditional financial powerhouse, but it is also evolving into a vibrant hub for Web3 companies. Notably, in August, the city opened doors to retail trading for licensed cryptocurrency exchanges, a move closely monitored by global market players.
Earlier, a similar development was observed in a report by Todayq News on September 4, 2023; the London Stock Exchange (LSE) Group had revealed plans to introduce a blockchain-based platform for traditional financial assets. This strategic shift aims to enhance the efficiency, transparency, and cost-effectiveness of traditional asset transactions without involving cryptocurrencies.
However, amid these positive evolutions, Hong Kong faced a significant setback with the revelation of the largest Ponzi scheme in its history. Approximately $180 million in users’ funds were allegedly misappropriated by the JPEX crypto exchange. An ongoing investigation is diligently addressing this matter, underscoring the importance of regulatory oversight in this burgeoning sector.