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- 1 HKEX and Clearing Limited united to launch a DAML-based settlement platform powered by smart contracts.
- 2 The new settlement platforms so-called HKEX synapse add more transparency and efficiency to trade workflows.
With technological advancement, trading becomes effective and demanding as well. Upsurge in cybercrime suddenly enhanced the need for an efficient post-trading workflow with added efficiency and high-level transparency. Hong Kong Exchanges (HKEX) and Clearing Limited in combination, come up with a plan to fulfill the rising demand for transparent and efficient trade workflow.
What are these parties planning to offer? Let’s uncover the EKEX Synapse settlement platform.
What is HKEX and Clearing Limited Planning?
HKEX and Clearing Limited, a publicly traded market operator united to offer traders with more efficient and transparent trade workflow. The operators launched a blockchain-based settlement platform powered by smart contracts.
On October 4, news from the HKEX and Clearing Limited office announced the launch of a new settlement platform.
The motive is to connect markets in Hong Kong and Mainland China known as Stock Connect. The project is expected to boost operational efficiency, lower settlement risks, and support transparency using the concept of smart contracts.
Waiting for the launch?
According to the report of the HKEX Group Head, The platform is expected to be launched on October 9.
“The major enhancement in the Stock Connect infrastructure to support the next phase of international participation in Mainland China’s equity market is supposed to be rolled out”, stated HKEX Group Head, Glenda So.
Standardization and simplification of the post-trade activities is the main goal behind the launch.
The goal is expected to be achieved using Digital Asset Modeling Language (DAML), a smart contract language mainly designed for distributed ledger technologies.
The systematic launch of the plan will help HKEX in refining the Stock Connect initiative, making trading more efficient and accessible to investors.
Extension of the annual trading calendar by up to 10 days and involvement of thousands of new Mainland Chinese stocks to the Stock Connect list are some recent improvisations.
What is making HKEX Synapse more interesting to investors?
HKEX Synapse Features
According to HKEX’s press release, HKEX Synapse is going to offer more transparent and efficient trading services to investors. The platform is all set to offer precision and security, allowing users to make complex and reliable transactions without the need for central authority.
The concept is emerging as one of the great innovations in the Stock Connect program which is all set to bridge the financial gaps between Hong Kong and Mainland China.
One of the main features that booming HKEX Synapse’s value in the cryptocurrency market is the requirement for sequential processes. High level of visibility in the settlement phase and synchronization of real-time data and scalability adding seven stars to the platform.
In addition to this, HKEX Synapse will be offered as an elective service, mainly to institutional investors looking to manage post-trade actions in different time zones.
Conclusion
The news from HKEX and the Clearing Limited office filled institutional investors with joy. The launch of a DAML-based settlement platform powered by smart contracts is all set to add more transparency and efficiency to trade workflows. Synchronization and scalability factor is going to enhance the trading workflow.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
