A platform based on TCS BaNCS for Market Infrastructure will provide clearing and settlement.
The Australian Securities Exchange (ASX) has selected Tata Consultancy Services (TCS) to provide a clearing and settlement platform for the Australian market based upon TCS BaNCS for Market Infrastructure that will replace ASX’s incumbent CHESS system.
The TCS BaNCS for Market Infrastructure has been designed for central securities depositories (CSDs), central counterparty clearinghouses (CCPs), exchanges, and central banks, TCS says.
The new platform is slated to be implemented in two releases. “While the clearing 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,” according to TCS.
“The CHESS replacement project will now move to the next phase of detailed design and implementation, with further stakeholder consultation to commence in the first quarter of 2024,” according to an ASX announcement. ASX officials say they selected the TCS offering because of the industry and customer benefits including improved scalability, a staged implementation, the reuse of industry investments, interoperability, and innovation.
“The solution can provide for connectivity with alternate technologies, including distributed ledger technologies and other emerging technologies. This will support future innovation by creating opportunities for new services to be introduced by ASX or other providers as driven by market demand,” according to ASX.
ASX facilitates transactions in equities, fixed income, commodities and energy. It offers primary and secondary market services, including the raising, allocation and hedging of capital flows; trading and price discovery; central counterparty risk transfer; and securities settlement for equities and fixed income markets, officials say.
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