Hong Kong Exchange Prepares for Blockchain Trading Platform. Hong Kong Exchange and Clearing Limited (HKEX) has teamed up with Digital Asset. Subsequently, to develop a blockchain platform for post-trade allocation and processing of trades.
As per the FinExtra report, under the ‘Stock Connect’ programme with China, this partnership is made. HKEX dealing with a model framework for Stock Connect using Digital Asset’s platform. Also, a smart contract modeling, as it endeavors to accelerate the post-trade process and lower settlement risks among traders.
Stock Connect is a collaboration between the Hong Kong stock exchange and its Shanghai and Shenzhen counterparts. However, the collaboration aims to provide investors from member nations. This is a trading platform in each other’s market using their country’s stock exchange platform.
HKEX CEO, Charles Li, at a tech event in Hong Kong revealed the news about this partnership. He argued that the distributed ledger technology could be helpful in resolving “post-trade operational challenges”.
Currently, investors that trade via the system with the tight settlement cycle of mainland China’s trade policy. With just a four-hour window to complete trade and settlement. Time zone differences across regions further complicate the post-trade processing.
HKEX quite busy exploring different avenues regarding significant use cases for blockchain technology. Li further commented, “This could be the beginning of a long journey of innovation and revolution, and we’re very excited to share this important milestone”.
Early last year, HKEX announced plans to launch a private market where startups can acquire a blockchain based share registration, conduct pre-IPO financing and get all the regulations put in place that is needed from the financial regulatory.
In addition, Ping An Insurance (Group) Company of China, Ltd. delivered Hong Kong’s first blockchain-based international trade finance platform, eTradeConnect. Seven founding banks in Hong Kong initiated this. Also, the Hong Kong Monetary Authority (“HKMA”) facilitated this. The Hong Kong-based blockchain startup developed OneConnect, which is a blockchain based international trade finance platform for businesses to “access real-time, secured and comprehensive trade information to conduct their risk assessment on loans, boosting efficiency and potentially reducing costs.” OneConnect is a fintech subsidiary of Ping An, and the founding banks appointed this with the founding banks via the ‘Hong Kong Trade Finance Platform Company Limited’ as a technology provider to help design, develop and deploy the platform.