Hong Kong Exchanges and Clearing Limited (HKEX), a company that operates stock markets, is introducing a new platform called HKEX Synapse.
This platform uses blockchain technology to boost operational efficiences, reduce the chances of errors during settlement and increase transparency by using smart contracts to increase post-trade workflows.
This new platform is a part of a program called Stock Connect, which connects the financial markets in Hong Kong and mainland China. HKEX Synapse is set to become operational on October 9.
Glenda So, HKEX Group Head of Emerging Business and FIC, said, “We are delighted to launch HKEX Synapse, a major enhancement to our Stock Connect infrastructure that will support the next phase of growth for international participation in Mainland China’s equity markets,” in a statement.
HKEX Synapse revolutionizes traditional processes by providing real time visibility and valuable insights into the settlement process, benefitting asset managers, brokers, custodians, and clearing participants.
Asset managers, brokers, custodians, and clearing participants will experience advantages from real-time data synchronization and enhanced scalability, which will assist them in managing the increasing number of trades facilitated via the Northbound Stock Connect platform.
HKEX Synapse utilizes DAML, an open-source smart contract language, which enables the seamless sharing of data between different blockchain systems and traditional centralized databases.
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