Citi settles first trades on HKEX Synapse platform

Citi Securities Companies introduced the profitable settlement of trades for China Asset Administration (Hong Kong) [ChinaAMC (HK)] on Hong Kong Exchanges and Clearing Restricted (HKEX) Synapse platform, which went reside for trades settlement on October 9, 2023. This was among the many first trades executed and settled on the newly launched Synapse platform.

Synapse is HKEX’s new built-in settlement acceleration platform designed to enhance the prevailing Northbound Inventory Join post-trade infrastructure. Launched in 2014, Inventory Join is a landmark mutual market entry program connecting the fairness markets of Mainland China and Hong Kong, paving the best way for Hong Kong and worldwide buyers to entry the China A Share market.

Citi has labored intently with HKEX, since being invited to take part within the Synapse pilot undertaking in 2019, to develop and produce on-line a totally automated API-powered Synapse connectivity answer. Citi is the primary and solely financial institution in Hong Kong to supply this functionality and within the course of has absolutely aligned its custody platform to supply the whole advantages of Synapse to its shoppers.

HKEX Head of Rising Enterprise and FIC, Glenda So, stated:

“We warmly welcome Citi as one of many inaugural individuals to HKEX Synapse. This new built-in settlement acceleration platform for Inventory Join will improve operational efficiencies and assist assist the event of a extra sturdy and interconnected market ecosystem. Citi is the primary participant to totally combine its custody platform with Synapse, enabling seamless execution of trades from Day 1.

We want to thank them and all individuals which have supported the design, construct and roll out of Synapse and we look ahead to welcoming extra individuals to the platform because it continues to develop.”

The event of Synapse by HKEX is complementary to the worldwide push in the direction of settlement cycle discount, as seen most lately in North America which is making ready to maneuver to a T+1 settlement cycle round Might 2024. The Synapse platform supplies worldwide and native buyers with larger transparency and visibility over transaction statuses, which is vital given the time zone variations that have an effect on working and processing hours.

“We’re delighted to be among the many first group of asset managers to pilot the HKEX Synapse platform. This marks one other vital win in optimizing the two-way stream of capital between Hong Kong and the Mainland,” stated Tian Gan, CEO of ChinaAMC (HK). “As a number one Chinese language fund administration firm in Hong Kong, we’re working diligently with our companions akin to Citi as our custodian, to arrange for this rollout, as we join China and the world.”

“Inventory Join is the popular route for worldwide buyers accessing Mainland China securities. The API answer that Citi has designed is absolutely appropriate with Synapse and can assist handle current operational complexities. The event of Synapse additional cements Hong Kong’s place as a number one worldwide monetary hub because it innovates and enhances its current market infrastructure to offer a seamless expertise to buyers,” stated Caroline Chan, Hong Kong Head of Securities Companies at Citi.