Citi Successfully Settles First Trades on HKEX Synapse Platform

Rhea-AI Summary

Citi Securities Services successfully settles trades for China Asset Management on HKEX Synapse platform.

Positive

• Citi is the first bank in Hong Kong to offer a fully automated API-powered Synapse connectivity solution.
• Synapse platform provides greater transparency and visibility over transaction statuses for international and local investors.

Negative

• None.

HONG KONG--(BUSINESS WIRE)-- Citi Securities Services announced the successful settlement of trades for China Asset Management (Hong Kong) [ChinaAMC (HK)] on Hong Kong Exchanges and Clearing Limited (HKEX) Synapse platform, which went live for trades settlement today. This was among the first trades executed and settled on the newly launched Synapse platform.

Synapse is HKEX’s new integrated settlement acceleration platform designed to complement the existing Northbound Stock Connect post-trade infrastructure. Launched in 2014, Stock Connect is a landmark mutual market access program connecting the equity markets of Mainland China and Hong Kong, paving the way for Hong Kong and international investors to access the China A Share market.

Citi has worked closely with HKEX, since being invited to participate in the Synapse pilot project in 2019, to develop and bring online a fully automated API-powered Synapse connectivity solution. Citi is the first and only bank in Hong Kong to offer this capability and in the process has fully aligned its custody platform to offer the complete benefits of Synapse to its clients.

HKEX Head of Emerging Business and FIC, Glenda So, said: “We warmly welcome Citi as one of the inaugural participants to HKEX Synapse. This new integrated settlement acceleration platform for Stock Connect will enhance operational efficiencies and help support the development of a more robust and interconnected market ecosystem. Citi is the first participant to fully integrate its custody platform with Synapse, enabling seamless execution of trades from Day 1. We would like to thank them and all participants that have supported the design, build and roll out of Synapse and we look forward to welcoming more participants to the platform as it continues to grow.”

The development of Synapse by HKEX is complementary to the global push towards settlement cycle reduction, as seen most recently in North America which is preparing to move to a T+1 settlement cycle around May 2024.The Synapse platform provides international and local investors with greater transparency and visibility over transaction statuses, which is important given the time zone differences that affect operating and processing hours.

"We are delighted to be among the first group of asset managers to pilot the HKEX Synapse platform. This marks another significant win in optimizing the two-way flow of capital between Hong Kong and the Mainland,” said Tian Gan, CEO of ChinaAMC (HK). “As a leading Chinese fund management company in Hong Kong, we are working diligently with our partners such as Citi as our custodian, to prepare for this rollout, as we connect China and the world."

“Stock Connect is the preferred route for international investors accessing Mainland China securities. The API solution that Citi has designed is fully compatible with Synapse and will help address existing operational complexities. The development of Synapse further cements Hong Kong’s position as a leading international financial hub as it innovates and enhances its existing market infrastructure to provide a seamless experience to investors,” said Caroline Chan, Hong Kong Head of Securities Services at Citi.

With approximately USD$27.8 trillion¹ of assets under custody, administration and trust worldwide, and a leading proprietary network spanning more than 60 markets, Citi Securities Services provides cross-border support for clients with extensive on-the ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of securities services solutions that can be tailored to meet clients’ needs.

About Citi:

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

¹ As of 30 June 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231009181846/en/

Media Contacts:

Arundathi Abyshekar

arundathi.abyshekar@citi.com

+852 2868 7684

Belinda Chung

belinda.chung@citi.com

+852 2962 3218

Source: Citi

FAQ

What is the Synapse platform?

Synapse is HKEX’s new integrated settlement acceleration platform designed to complement the existing Northbound Stock Connect post-trade infrastructure.

What is Stock Connect?

Stock Connect is a mutual market access program connecting the equity markets of Mainland China and Hong Kong.

What is the benefit of Synapse?

Synapse provides greater transparency and operational efficiencies for investors accessing the China A Share market.

Who is the first bank to offer the Synapse connectivity solution?

Citi is the first and only bank in Hong Kong to offer a fully automated API-powered Synapse connectivity solution.

What is the significance of Citi's integration with Synapse?

Citi's integration with Synapse enables seamless execution of trades and enhances operational efficiencies for its clients.