TCS Partners with ASX to Deliver Next-Gen Clearing & Settlement Platform
In a groundbreaking move, Tata Consultancy Services (TCS) recently inked a significant agreement with ASX, Australia's principal securities exchange, aimed at ushering in an advanced clearing and settlement platform for the Australian market.
The partnership, unveiled through an exchange filing by TCS, highlights the implementation of TCS' flagship solution, TCS BaNCS for Market Infrastructure, to drive a transformative shift in ASX's operations.
TCS-ASX Collaboration for Cutting-edge Platform
Expanding the Partnership:
TCS' partnership with ASX is poised to revamp the clearing and settlement processes in the Australian market. The adoption of TCS BaNCS technology marks a pivotal upgrade from ASX's existing platform, particularly for cash equities clearing and settlement.
Next-Gen Technology for Financial Evolution
Platform Transformation Overview:
ASX's migration to TCS BaNCS for Market Infrastructure promises a state-of-the-art technology stack. The transition will occur in two phases, with the initial phase focused on the clearing service, followed by the rollout of settlement depository and sub-register services in the subsequent phase.
Delivery Strategy and Impact Management:
The phased implementation strategy aims to mitigate delivery risks while efficiently handling the impact on industry stakeholders. This approach signifies a calculated move toward seamless integration and operational efficiency.
TCS' Vision and Global Market Penetration
TCS's Insight and Contribution:
Vivekanand Ramgopal, President of BFSI Products & Platforms at TCS, expressed delight at being chosen by ASX for this transformative initiative. He emphasized TCS' proven expertise in critical business functions, consistent product investments, and shared futuristic vision for Market Infrastructure Institutions in the technology-driven era.
BaNCS for Market Infrastructure: Global Adoption and Unique Capabilities:
TCS BaNCS for Market Infrastructure, a pioneering solution tailored for central securities depositories, clearing houses, exchanges, and central banks, offers multi-asset class capability across post-trade processes. This innovation has garnered adoption in over 20 countries for its unparalleled functionality and multi-market support.
Market Impact and Financial Movement
TCS Market Influence:
The impact of TCS' strategic collaboration was evident in the financial markets, with TCS shares trading at Rs 3,523.30, registering a 0.60 percent increase at 11:03 am IST on Monday.
What is TCS BaNCS ?
TCS BaNCS is a multi-asset class clearing and settlement solution designed for central securities depositories (CSDs), central counterparty clearing houses (CCPs), exchanges, and central banks. It is one of the most widely used clearing and settlement solutions in the world, with deployments in over 20 countries.
Key Features of TCS BaNCS
- Support for multiple markets, currencies, and asset classes: TCS BaNCS can be deployed to support a wide range of securities, including equities, bonds, derivatives, and other financial instruments.
- Scalability: TCS BaNCS can be scaled to support the needs of any market, regardless of its size or transaction volume.
- Security: TCS BaNCS is built with the highest levels of security to protect against fraud and market abuse.
- Integration: TCS BaNCS can be integrated with other financial systems and applications to provide a seamless end-to-end solution.
- Automation: TCS BaNCS automates many of the tasks involved in clearing and settlement, reducing manual intervention and eliminating errors.
Benefits of TCS BaNCS
- Reduced costs: TCS BaNCS can help to reduce costs by automating processes and eliminating manual intervention.
- Improved efficiency: TCS BaNCS can help to improve efficiency by streamlining processes and reducing transaction times.
- Enhanced risk management: TCS BaNCS can help to improve risk management by providing real-time visibility into market data and transaction flows.
- Increased compliance: TCS BaNCS can help to increase compliance with regulatory requirements by providing a robust audit trail.
TCS BaNCS Clients
TCS BaNCS is used by a wide range of clients, including:
- Central Securities Depositories (CSDs): TCS BaNCS is used by CSDs to clear and settle securities on behalf of their member institutions.
- Central Counterparty Clearing Houses (CCPs): TCS BaNCS is used by CCPs to manage the risks associated with over-the-counter (OTC) derivatives trades.
- Exchanges: TCS BaNCS is used by exchanges to clear and settle trades on their marketplaces.
- Central Banks: TCS BaNCS is used by central banks to manage their domestic payments systems.
Relevant and Latest Facts:
TCS BaNCS for Market Infrastructure is an industry-leading solution that has been deployed by market infrastructure institutions in more than 20 countries.
The new platform will be based on a state-of-the-art technology stack that will support multiple markets, currencies, and asset classes.
The platform will be implemented in two phases to reduce delivery risk and minimize disruption to the Australian market.
The TCS-ASX alliance signifies a milestone in technology-led market infrastructure enhancements. This collaborative effort sets a precedent for leveraging cutting-edge technology to revolutionize financial ecosystems and drive unparalleled efficiency and reliability.