Home » ASX to replace its clearing and settlement platform through TCS as part of fresh overhaul plans – The TRADE

ASX to replace its clearing and settlement platform through TCS as part of fresh overhaul plans – The TRADE

Australian securities exchange ASX is set to replace its cash equities clearing and settlement platform with Tata Consultancy Services’ (TCS) platform, a proactive step in overhauling the post-trade offering after its six-year long blockchain ambitions came to an end in 2022. 

ASX will implement TCS’ flagship product, TCS BaNCS for Market Infrastructure, set to be implemented in two releases – first the clearing service, followed by the settlement depository and sub‐register services.

According to the business, the two stages are “expected to reduce overall delivery risk and help manage the impact on industry stakeholders”.

The TCS BaNCS for Market Infrastructure solution is specifically designed specifically for central securities depositories (CSDs), central counterparty clearing houses (CCPs), exchanges, and central banks.

Australia is one of TCS’ fastest growing regions, the firm said. TCS BaNCS for Market Infrastructure has been adopted by market infrastructure institutions across over 20 jurisdictions.

Vivekanand Ramgopal, president, BFSI products and platforms at TCS, said: “Our selection is an affirmation of our track record in this mission-critical business, continuous investments in our products, and shared vision of how we see the future of Market Infrastructure Institutions in a technology-led world. TCS BaNCS for Market Infrastructure continues to gain traction in the global market with its rich functionality and unique multi-asset class capability across the post-trade value chain.

“Combined with our fit-for-purpose approach to technology and innovation, this gives us the confidence to deliver a robust future-proof solution stack for the Australian market.”

ASX walked away from its planned distributed ledger technology (DLT) project to replace its legacy clearing and settlement system in November 2022, ending a six-year journey filled with delays and criticism.

The project, first announced in 2016, was once seen as the poster child of innovation within the market infrastructure and post-trade space, being the first blockchain project launched amid an era of belief that the technology could revolutionise the plumbing of the financial services industry.

Instead of completion, the project ended after six years of delays and uncertainty. At the time, ASX said it would write off between AUD$245-255 million, while the Australian Financial Review (AFR) reported it may have to “compensate trading firms that spent at least $100 million on their own upgrades”.