Australian Stock Exchange (ASX) To Implement TCS’ Flagship TCS BaNCS After Failed Blockchain Attempt

Tata Consultancy Services will deploy its global solution TCS BaNCS for Market Infrastructure for the replacement of ASX’s cash equities clearing and settlement platform which services the Australian market.

Australian Securities Exchange Ltd (ASX), an Australian public company that operates Australia's primary securities exchange, has today entered into an agreement with Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) for the delivery of its TCS BaNCS for Market Infrastructure product, which offers a modular technology platform for clearing and settlement services.

TCS will provide a next generation clearing and settlement platform to service the Australian market. ASX will implement TCS’ flagship product TCS BaNCS for Market Infrastructure to enable the transformation.

This comes after ASX abondoned its previous plan to rebuild its software platform with blockchain-based technology. The 6-years-long blockchain-based project to rebuild ASX’s existing platform faced a number of hurdles, including resistance from companies on the platform to use the shared ledger.

The cancellation of earlier blockchain plan came after an independent review by the accounting firm Accenture and an internal review by ASX.

The TCS product will be used to replace ASX’s existing platform for cash equities clearing and settlement. Notably, TCS's software is used by securities exchanges around the world including in Finland and Canada. 

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. 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.

TCS has proven its execution capabilities for mission-critical projects with its award-winning suite of products and platforms. The agreement with ASX further fortifies its footprint in Australia, one of TCS’ fastest growing geographies, with its strong local partner network, expertise in cutting-edge technologies, investments in research and innovation, and deep domain knowledge of the banking financial services, and insurance sector for over 30+ years. TCS has also been recognized as one of the LinkedIn Top 25 companies and a Top Employer in the region for four consecutive years.

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.”

TCS BaNCS for Market Infrastructure is an industry-first solution designed specifically for central securities depositories (CSDs), central counterparty clearing houses (CCPs), Exchanges, and Central Banks. With an ability to support multiple markets, currencies, and asset classes, it has been adopted by market infrastructure institutions in more than 20 countries.

ASX is one of the largest securities exchanges in the world with a market capitalisation of all listed entities on the ASX reaching AUD $2.5 trillion in FY23. ASX was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006 and is an integrated exchange offering listings, trading, clearing, settlement, technical and information services, technology, data and other post-trade services.

ASX operates markets for a wide range of asset classes including equities, fixed income, commodities and energy. As an integrated exchange, ASX’s activities span 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 both the equities and fixed income markets.

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