Home » TCS secures deal with Australia’s ASX to revamp its platform

TCS secures deal with Australia’s ASX to revamp its platform

Tata Consultancy Services (TCS) has inked a deal with the Australian Securities Exchange (ASX) on Monday, marking a significant step in the digital transformation of the country’s market.  

The agreement centers around the implementation of TCS’s flagship product, BaNCS for Market Infrastructure, replacing ASX’s existing platform for cash equities clearing and settlement. 

The transition to the new platform will occur in two phases. The initial phase will introduce the clearing service, followed by the second phase, which will encompass settlement depository and sub-register services. This staged approach is designed to minimize overall delivery risks and facilitate a smoother transition for industry stakeholders, the company said. 

The projected cost for the first release ranges between $105 million and $125 million, spread across multiple years. Details regarding the scope, timing, and cost of the second release are anticipated to be finalized in late 2024. 

Vivekanand Ramgopal, President, BFSI Products & Platforms, TCS, said, “We are delighted to be ASX’s choice for this transformation. 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.” 

As per a report by Reuters, this decision marks a departure from ASX’s previous blockchain-like technology adoption strategy in 2017. The phased implementation of TCS’s software represents a more cautious approach compared to the initial “big bang” changeover plan, addressing concerns about potential risks. The overhaul is expected to conclude in 2029, 13 years after initiation. 

TCS’s software, utilized by exchanges worldwide, including Finland and Canada, is well-suited for functions within ASX’s Clearing House Electronic Subregister System (CHESS).