Market Infrastructure

Transcription

1 Market Infrastructure

2 Against the backdrop of dynamic changes in global capital markets, market infrastructure institutions are increasingly faced with the need to re-invent themselves and effectively respond to evolving trends in the trade and post-trade landscape. With significant focus on regulatory compliance and the pressure of sustaining revenue streams and growing competition, it has become imperative for them to maintain a competitive edge by offering superior, reliable, and cost-effective services, while they also comply with regulatory and market initiatives such as EMIR, FATCA, T2S, CSD-R, and CPMI-IOSCO Principles for Financial Market Infrastructures (PFMI). Timely investment in technology holds the key to enabling organizations stay at the forefront of change, adapt quickly, and ensure service excellence to their customers at lower costs and with fewer risks. Tata Consultancy Services (TCS), with TCS BaNCS, has further consolidated its position as the leading, independent player in the market infrastructure space, with a host of new customers across the globe. Our solutions cover the entire market infrastructure value chain, ranging from clearing, settlement, depository, and registry services to exchange trading and market surveillance. TCS BaNCS for Market Infrastructure helps institutions drive Straight-Through Processing (STP) by providing the unique ability to support multiple markets and asset classes on the same platform. The solution supports end-to-end trade and post-trade functions, including trade matching, risk and collateral management, surveillance, unified clearing, settlement, and depository and registry functions around a common reference data layer. The solution is continuously benchmarked to global regulatory standards such as IOSCO-CPMI Principles for Financial Market Infrastructures (PFMI), FATCA/CRS, EMIR, and CSD-R. Being T2S-ready, the solution offers our customers the ability to interoperate with the T2S platform across functions, including reference data, settlement, corporate actions, reporting, and reconciliation.

3 I am excited about the opportunities this business transformation initiative presents CSCS. This will deliver far-reaching benefits to the Nigerian capital markets as a whole and position us to take advantage of the increased interest in the creation of regional markets through linking of post-trade services. The selection of TCS BaNCS will not only enable us generate efficiencies in our core operations but also help expand our portfolio of service offerings. Kyari Bukar, CEO, CSCS Nigeria Continuous Innovation Beyond Tomorrow Diversification into new business lines is an important differentiator for businesses, and often depends on an organization's ability to leverage existing investments in infrastructure and technology. Recognizing this need, we continuously conceptualize and roll out new features in the TCS BaNCS for Market Infrastructure solution. These may be implemented as add-on components or used independently, depending on a customer's business needs. Insurance Repository The latest addition to the TCS BaNCS product portfolio is a one-stop shop for insurance policy holding and administration, allowing insurers and policyholders to access various services over the same platform. The solution can help insurers significantly reduce the cost of administration through digitization of paper-based policies, improve STP levels through faster processing, and provide a 'single-window view' to policyholders to efficiently manage their policies. It ensures that policyholders' rights are adequately safeguarded in the event of national disasters. The digital revolution sweeping the world has highlighted the need for organizations to continuously improve customer experience. In line with this, a number of enhancements have been made in the Market Infrastructure solution. These include a highly intuitive participant connectivity front-end application targeted exclusively to endcustomers. For example, users from issuer, issuer agent, and custodian firms can seamlessly access and interact with the CSD solution using this solution. Secondly, Enterprise Apps have been launched to enable real-time access to business critical data on mobile devices. Further, a data warehousing and analytics solution is available to enable CXOs from market infrastructure firms access, slice and dice data stored in an application, and gain better insights into their business. Centralized KYC Know Your Customer' (KYC) checks are an integral part of the client on-boarding process at market infrastructure providers, just as it is for other financial institutions. The centralized KYC solution from TCS BaNCS is designed to eliminate the need for KYC checks at multiple financial institutions, thus delivering cost and operational efficiencies for the market as a whole.

4 TCS BaNCS for Market Infrastructure Components The Market Infrastructure solution has been designed for easy deployment either as an integrated or a standalone solution for an individual service. The solution provides freedom from platform dependence and is designed to help your firm achieve a lower Total Cost of Ownership (TCO). It consists of the following solutions: Depository and Registry The solution caters to the needs of CSDs, including Demat and Remat, immobilization or upliftment, and account and settlement transfers. Double entry bookkeeping of multiple asset classes, including equities, fixed income instruments and mutual funds is supported on a single platform. The solution s T2S readiness gives it the ability to interoperate with the T2S platform for a wide range of business functions. Cross-border settlement at CSDs is facilitated through the CSD link as well as the Global Custodian model. The solution handles end-to-end processing of a variety of corporate actions events in compliance with industry standards such as SMPG and CA-JWG. It also supports real-time interfaces with exchanges, clearing corporations, RTAs and registry firms, external CSDs and ICSDs, and market participants and custodians. Tax management services are also supported based on country of domicile and tax treaty arrangements. Parameterized processing of withholding and distribution tax, coupled with tax refund handling ensure high flexibility in catering to the taxation needs in multiple markets. Clearing and CCP The solution supports multiple BIS settlement models (Models 1, 2, and 3) and Central Counter Party (CCP) services with integrated risk management, enabling stress and back testing, portfolio margining, and collateral management. Clearing organizations can introduce new derivative products and financial instruments quickly, ensuring enforceability of a trade, and provide a choice of settlement venues for market participants. It is also a platform to register, clear, and settle OTC derivative products such as Interest Rate Swaps over the entire lifetime of the product. Exchanges Designed to provide stock exchanges with a robust technology platform for quick execution of trades, this solution for exchanges includes a high performance matching engine, market data dissemination, index computation and a trading front-end to handle spot and derivatives, including spread contracts. Central Banks This solution facilitates managing the capital of a country through the issuance of government securities, repo and reverse repo, and pledge and lien of securities. It allows for easy secondary market trading of these issued government securities through the exchange trading module, or as OTC trades. Corporate actions processing on fixed income instruments is also supported. Surveillance Stock exchanges, CSDs, Self-Regulatory Organizations (SROs), and market regulators can easily maintain integrity and transparency in their markets, thus ensuring greater investor confidence. The solution allows real-time monitoring of capital market transactions and detects and prevents manipulative and abusive trade practices. These features, combined with support for global messaging standards have helped our customers achieve greater automation, significantly reduce operating costs and transform the markets in their countries.

5 Strate is committed to continuous innovation and to bringing efficiencies and world-class IT infrastructure to the financial markets in South Africa. We have decided to migrate all our technology to the Market Infrastructure solution from TCS BaNCS We have been using TCS for the last 16 years.we trust them implicitly They have been my partner forever Monica Singer, CEO, Strate A Catalyst for Transformation in Global Capital Markets Regulatory reforms, dynamic market forces, and the evolution of a sophisticated trading environment are having a profound impact on capital markets today. Market infrastructure firms are under greater pressure to ensure robust governance structures, respond to changes, and stay resilient. Shortened settlement cycles from T+5 towards T+3 or T+2 demand real-time interfaces, including those with stock exchanges, custodians, payment banks, and RTGS platforms. In an increasingly interconnected world, there is a need to link domestic CSDs with international CSDs, global custodians, and external CSDs to facilitate cross-border settlement and ensure better flow of foreign investment. Changes related to market harmonization, such as T2S, are driving CSDs to revisit their current operating models and IT strategy to benefit from the opportunities that these changes bring and to ensure long-term sustainability of operations. It is imperative for organizations to maintain a competitive edge by lowering risks and providing new services, with better execution and transparent pricing. The need is for an integrated technology solution that can deliver high-performance trading and Central Counterparty (CCP) services for exchange and OTC markets, in cash and derivative segments, with the ability to cater to multiple assets and markets on a single platform. Thus, from helping leading CSDs to global CCPs, exchanges and central banks in Europe, the Middle East, Africa, LATAM, and APAC, TCS BaNCS for Market Infrastructure has been a catalyst in driving transformation. It can help your organization retain and hone its competitive edge, showcase regulatory compliance, and increase operational efficiency and profitability.

6 Depository/ Registry Clearing/CCP Exchange Central Bank Multi-asset class capability Equities, Fixed income, Commodities, Index Currency Pairs, Interest Rates, Energy Messaging Standards Multi-browser Support Multi-market Cash, Derivatives, and OTC Markets Multi-entity, Multi-currency, and Multilingual Support J2EE, SOA, UML Regulatory Compliance Quick Time to Market Global best practices G30, Settlement Models, and Payment Methods Compliance to standards EMIR, CSD-R, FATCA, and CRS compliant ISO 15022, 20022, FIXML Value-added services A complete solution Risk and Collateral Management SLB, Pledge, and Repo Services IPO, Tax Management Vision: To provide best-in-class financial technology for market infrastructure institutions, with unique multi-asset class, multi-market capability, enabling transformation and regulatory compliance. An overview of the Market Infrastructure solution from TCS BaNCS

7 With this (TCS BaNCS for Market Infrastructure) key project going live, Maroclear is marking a strong and decisive contribution to the modernization of the Moroccan capital market. Maroclear has made a great leap forward in terms of performance, safety, and high availability of its infrastructure. More importantly, Maroclear is now able to build up on its new infrastructure and provide a wider spectrum of value-added services to the financial community, within Moroccan boundaries and beyond. Fathia Bennis, Chief Executive Officer, Maroclear Manage Changes in Strategy, Market Structure, and Regulatory Initiatives Over 25 institutions across six continents have chosen TCS BaNCS for Market Infrastructure in spearheading market transformation and regional integration initiatives. The solution is componentized, highly scalable, and deployable in an integrated STP environment. It provides multi-entity support to ensure adherence with regulatory requirements that may need segregation of entities engaged in providing various services, thus providing flexibility in business models. In addition, a parameter-driven processing approach enhances flexibility to deal with variations in business processes across markets and asset classes. Based on modern and proven technology, these components can help organizations by providing: Rich functionality Multi-currency, multi-asset class, multi-market support Comprehensive accounting models to support omnibus and segregated views with double entry book keeping for transactions Unified clearing with support for multiple BIS settlement models; a variety of Exchange Traded and OTC products, with integrated risk and collateral management Futures and options on commodities Cash and physical settlement of derivatives Exchange and CSD surveillance along with alerts and case management Robust CSD solution catering to on-exchange, as well as off-exchange domestic and cross-border trade settlement and asset servicing Integrated platform for end-to-end mutual fund services, including order routing and settlement Specialized services for CSDs such as securities lending, Repurchase agreement (Repo), pledge, IPO, AGM and proxy voting services SMS/ notifications to market participants for real-time updates of transactions Regulatory and standards compliance Regulatory compliance with CSD-R, IOSCO - CPMI, LEI, EMIR, CAJWG, MiFID II, FATCA and CRS regulations High level of automation through the use of industry standard messages ISO 15022, ISO 20022, FIX, FIXML, FpML STP in cross-border processing and easy access to new markets Co-existence of ISO 15022/20022 standards to help participants gradually adapt to newer standards High performance, low latency exchange trading and market data dissemination

8 About TCS BaNCS The TCS BaNCS product suite for banking, capital markets, and insurance enables business vices. Incr transf institutions stay agile, our solutions deliver a competitive edge with unmatched certainty. We aspire to be better than established benchmarks, which is why we have embedded an Alpha ( α ), representing superior returns delivered to our customers, consciously and prominently within our brand. The plug and play, component-based product suite consistently turns in impressive -tuned, highly scalable technology architecture that supports benchmark results or transaction volumes, peak transactions per second, and transaction history size. With such a track record, it is only natural that the TCS y size gain a distinct, competitive edge. BaNCS product suit Contact Us To know how we can help you innovate, transform and experience certainty through our TCS BaNCS solutions, connect with us at or tcs.bancs@tcs.com About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services is an IT services, consulting and business solutions organization that can match. delivers real results to global business, ensuring a level of certainty no other TCS ers a consulting-led, integrated portfolio of IT and IT-enabled, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery ModelTM, recognized as the benchmark of excellence in software development. A part of the Tata Group, India s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at All content / informationpresent here is the exclusiveproperty of Tata Consultancy Services Limited(TCS).The content / informationcontainedhere is correct at the time of publishing. No material from here may be copied,, reproduced, republished, uploaded, transmitted, posted or distributedin any form withoutpriorwrittenpermissionfrom TCS. Unauthorizeduse of the content/ informationappearinghere may violatecopyright, trademarkand otherapplicablelaws, and could resultin criminalor civilpenalties. Copyright 2018 Tata Consultancy Services Limited