HKEX launches settlement acceleration platform Synapse

Hong Kong Exchanges and Clearing Restricted (HKEX) right now announce the launch of HKEX Synapse, a brand new built-in settlement acceleration platform that utilises the most recent expertise to ship better market effectivity and transparency.

Synapse is the most recent enhancement to Inventory Join, the distinctive mutual market entry programme that connects Mainland Chinese language markets with these in Hong Kong. Synapse will launch on 9 October 2023, and can deploy DAML sensible contracts to standardise and streamline post-trade workflows, enhancing operational efficiencies and transparency while decreasing settlement dangers.

Synapse is a part of HKEX’s ongoing dedication to the event of Inventory Join, the environment friendly, accessible and cost-effective channel for traders collaborating in capital markets in Mainland China and Hong Kong. Different current enhancements to Inventory Join embrace the addition of as much as 10 Inventory Join buying and selling days per yr, in addition to the inclusion of greater than 1,000 extra shares listed in Mainland China and made accessible to worldwide traders through Northbound Inventory Join.

HKEX Synapse eliminates sequential processes, providing real-time visibility and insights into the settlement course of for all market contributors. Asset managers, brokers, custodians and clearing contributors will profit from real-time information synchronisation and improved scalability, serving to them to deal with the rising quantity of trades via Northbound Inventory Join. Common each day turnover of Northbound Inventory Join totalled RMB109.3 billion within the first half of 2023, up 5 per cent from a yr earlier, and a 50 per cent enhance from 2020 ranges.

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

“We’re delighted to launch HKEX Synapse, a serious enhancement to our Inventory Join infrastructure that can help the following section of progress for worldwide participation in Mainland China’s fairness markets. This technology-empowered platform is not going to solely enhance post-trade efficiencies, however will, over time, construct a greater, stronger ecosystem, supporting each market progress and investor progress methods. We’re very proud to be introducing Synapse to our market and we sit up for persevering with to embrace new applied sciences that profit our markets and our prospects sooner or later.”

Obtainable as an optionally available service, HKEX Synapse will help institutional traders collaborating in Northbound Inventory Join to raised handle their post-trade operations throughout totally different time zones, particularly with regard to adhering to the Mainland securities market’s T+0 settlement cycle.

HKEX Synapse will probably be linked with The Depository Belief & Clearing Company (DTCC) via its Institutional Commerce Processing (ITP) service. With this integration, international traders and HKEX contributors will profit from the central matching of cross-border transactions utilizing DTCC’s CTM service, which can robotically generate and ship settlement directions to the Synapse platform, streamlining the commerce affirmation and settlement notification course of.