Hong Kong Exchanges and Clearing Limited (HKEX) announced on Wednesday that it is implementing a smart contract upgrade to its Connect, a system that bridges Hong Kong and China’s stock markets, to enhance post-trade workflows and reduce settlement risk.
See related article: SFC to monitor illegal VATP activities with Hong Kong Police Force
Fast Facts
- Set to launch on Oct. 9, Synapse, the new settlement accelerator, aims to improve market efficiency and transparency, through a smart contract upgrade to HKEX’s Connect system.
- Synapse enables all parties in the settlement chain to create simultaneous settlement instructions while providing nearly instant updates to all traders.
- “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,” said Glenda So, the group head of emerging business and FIC, in a press release.
- HKEX’s upgrade comes during a period of increased institutional interest in blockchain technology, two weeks after the third largest banking institution in the U.S., Citigroup, announced the launch of a blockchain-based cross-border payments solution for institutional clients called Citi Token Services.
See related article: Hong Kong may tighten enforcement amidst JPEX scandal, says former SFC official
