INSUBCONTINENT EXCLUSIVE:
Tata Consultancy Services (TCS) has signed an agreement with Australia's primary securities exchange, ASX
Under the deal, the Indian IT giant will provide next-generation clearing and settlement platforms to the Australian market
ASX will implement TCS BaNCS for market infrastructure to enable the transformation
TCS to rebuild software after ASX's earlier flopThe TCS product will be used to replace ASX's existing platform for cash equities
clearing and settlement, TCS said in a statement.The new platform will be on a state-of-the-art technology stack with TCS BaNCS for Market
Infrastructure and is proposed to be implemented in two releases
TCS will overhaul the exchange's clearing and settlement software, reportedly opting for a route that will take less customisation after
ditching a much-criticised blockchain-based effort.According to a report by news agency Reuters, the choice is a major departure from its
decision in 2017, announced with much fanfare, to be at the vanguard of adopting blockchain-like technology for use in critical financial
architecture, an attempt that resulted in repeated delays before it was shelved last year
It is also said to represent a more cautious approach as ASX will switch to the new software in stages, rather than the "big bang"
changeover that its users considered risky
TCS software used in more than 20 countriesWith an ability to support multiple markets, currencies, and asset classes, TCS BaNCS for Market
Infrastructure is said to have been adopted by market infrastructure institutions in more than 20 countries.TCS's software is used by
exchanges around the world including in Finland and Canada for functions it would be expected to perform for ASX's Clearing House
Electronic Subregister System, or CHESS, the Australian exchange said on Monday, November 20.TCS President for BFSI Products and Platforms
Vivekanand Ramgopal said, "Our selection is an affirmation of our track record in this mission-critical business, continuous investments in
service is expected to be delivered in the first phase, the settlement depository and sub-register services will follow in the second phase
This staged approach is expected to reduce overall delivery risk and help manage the impact on industry stakeholders.ASX Managing Director
and CEO Helen Lofthouse said the TCS product is expected to meet the needs of today's market and provide important industry and customer
benefits, like improved scalability, maintaining high operational and resilience standards, while providing improved scalability and the
ability to support future market growth as required.
