The Hong Kong Exchanges and Clearing Limited (HKEX) is set to launch its IPO settlement platform FINI in October this year. FINI will significantly shorten the time between the pricing of an IPO and the trading of shares from five to two business days.

HKEX said that the exact launch date of FINI will be announced several weeks before launch, subject to market readiness.

Following the successful completion of external user testing earlier this month, HKEX will arrange market practice sessions and market rehearsals in July and August respectively.

This is intended to simulate interactive, end-to-end IPO settlement operations under FINI. These sessions will mark the final preparations for the full migration of the market to FINI in October.

Operating on a cloud-based platform, FINI will enable different stakeholders such as IPO sponsors, underwriters, legal advisers, banks, clearing participants, share registrars and regulators to collaborate and perform their respective roles in an IPO, digitally.

The new platform will also introduce a new public offer pre-funding model to help alleviate the scale of funds that are locked up in over-subscribed IPOs.

Nicolas Aguzin, HKEX’s Chief Executive Officer said,

“By digitalising, streamlining and modernising IPO settlement workflows, FINI will shorten the time between IPO pricing and the start of trading, enhancing market efficiency and strengthening the competitiveness and attractiveness of Hong Kong’s IPO market.

 

Throughout the conceptualisation, system development and external testing phases of FINI’s development, we have received strong support from market stakeholders demonstrating the widespread appetite for progressive innovations in the Hong Kong IPO market.”