Tata Consultancy Services (TCS), a leading IT provider based in India, has announced a groundbreaking partnership with the Australian Securities Exchange (ASX). The agreement involves the implementation of TCS BaNCS for Market Infrastructure, which will revolutionize the clearing and settlement platforms of Australia’s primary securities exchange.
Under the new deal, TCS will rebuild ASX’s existing software for cash equities clearing and settlement. This move comes after ASX’s previous attempt at adopting a blockchain-based technology faced significant delays and criticism, ultimately leading to its abandonment. The decision to opt for TCS BaNCS is a strategic shift towards a more cautious and staged approach to system transformation, alleviating the risk associated with a “big bang” changeover.
TCS BaNCS for Market Infrastructure is a state-of-the-art technology stack that has been adopted by market infrastructure institutions in over 20 countries. With its ability to support multiple markets, currencies, and asset classes, the TCS software has already been successfully utilized by exchanges in Finland and Canada.
The transformation process will be executed in two releases, with the clearing service being delivered in the first phase, followed by the settlement depository and sub-register services in the second phase. This staged approach not only reduces overall delivery risk but also ensures seamless management of the impact on industry stakeholders.
The TCS product is expected to meet the evolving needs of the market, providing enhanced scalability, operational reliability, and resilience standards. It will also have the capability to support the future growth of the Australian securities market.
With TCS’s extensive experience and expertise in mission-critical business operations, this partnership signifies a shared vision of leveraging technology to shape the future of market infrastructure institutions. The collaboration between TCS and ASX aims to enhance efficiency, improve customer experience, and foster growth in the Australian financial ecosystem.
Frequently Asked Questions (FAQ)
Q: What is TCS BaNCS for Market Infrastructure?
A: TCS BaNCS for Market Infrastructure is a cutting-edge technology stack developed by Tata Consultancy Services. It enables the transformation of clearing and settlement platforms for market infrastructure institutions.
Q: How many countries have adopted TCS BaNCS for Market Infrastructure?
A: TCS BaNCS for Market Infrastructure has been adopted by market infrastructure institutions in over 20 countries worldwide.
Q: Why did ASX opt for TCS BaNCS instead of blockchain technology?
A: ASX’s decision to partner with TCS and implement TCS BaNCS was a result of the challenges and delays faced during their previous blockchain-based initiative. The new approach ensures a more cautious and staged transition, reducing risk and offering improved scalability.
Q: What are the benefits of the TCS product for ASX and its stakeholders?
A: The TCS product is expected to meet the current market needs and provide important benefits such as improved scalability, high operational and resilience standards, and the ability to support future market growth.
Q: How will the transformation process be executed?
A: The transformation of ASX’s clearing and settlement platforms will be conducted in two releases. The clearing service will be delivered in the first phase, followed by the settlement depository and sub-register services in the second phase. This staged approach reduces delivery risk and facilitates effective management of the impact on industry stakeholders.