Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), a leading global IT services, consulting and business solutions organization, has successfully deployed the TCS BaNCSTM for Market Infrastructure product for Strate Pty Ltd, the Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa, across five exchanges. The implementation covers all markets and asset classes and marks a significant transformation in the South African securities market.
A key objective for Strate was to modernize its technology stack to support its growth and transformation objectives to serve the South African financial markets. Additionally, the CSD aspired to consolidate the different systems catering to various asset classes onto an integrated platform that would provide market participants with a single digital access point to enable effective and efficient processing. TCS BaNCS for Market Infrastructure was selected because of its integrated, state-of-the-art clearing and settlement platform that operates across markets and asset classes.
The TCS BaNCS implementation at Strate supports the full suite of CSD functions and is aligned to industry standards such as ISO 150022 and ISO 20022, making it one of the most contemporary, efficient, and STP-based CSD solutions in the world. While harmonizing processes and standards, it offers Strate the opportunity to customize settlement models to the individual exchanges. The CSD now benefits from real-time clearing, real-time settlement and netted settlement in accordance with all BIS models. With faster settlements, market participants are benefitting from improved liquidity and operational efficiencies.
André Nortjé, Chief Executive Officer, Strate, said, “The consolidation of multiple platforms onto a single standards-based solution has been Strate’s business vision, and with the TCS BaNCS for Market Infrastructure Solution, we have been able to achieve our objectives with ease. Our long partnership with TCS, complemented by TCS BaNCS’ successful track record for transformation program delivery, has assisted in the successful deployment and operationalization of the platform, supporting five exchanges in South Africa. The new solution has created common reference data and uniform messaging standards across all asset classes and business processes for all the markets we service, as well as enabling us to roll out newer services faster.”
“We are proud to have partnered with Strate, our long-standing customer, in this transformational journey. The TCS BaNCS solution has delivered a lean, simplified, state-of-the-art technology stack that reduces operational risks, improves business agility and enhances customer experience,” said R Vivekanand, Co-Head, TCS Financial Solutions. “Strate has set a benchmark for market infrastructure players globally in the adoption of modern technologies to drive innovation and to future-proof their operations.”
TCS BaNCS for Market Infrastructure is a world leading solution for CSDs, central counterparty clearing houses, exchanges and central banks. Its components support trade and post-trade functions, including matching, settlement, risk and collateral management, surveillance, unified clearing, issuance, depository, and registry functions around a common reference data layer. The solution supports real-time interfaces with market participants, using a wide range of messaging standards.
Designed for high performance, using the unique HpTM (High Performance Transaction Management) framework, it offers ‘unified clearing’ across cash and derivatives markets. Its Exchange module provides order management and matching across cash and derivatives markets. Exemplifying the TCS BaNCS solution’s Digital First, Cloud First philosophy, the solution can be deployed on a broad solutions stack, allowing organizations to manage TCO more efficiently. Additionally, market infrastructure organizations have the option of using the QuartzTM Blockchain solution to roll out end-to-end business functions on either blockchain or traditional technologies.