ASX Hires TCS to Overhaul Clearing and Settlement Software

 

In a significant move, the Australian Securities Exchange (ASX) has announced the appointment of Tata Consultancy Services (TCS) to overhaul its critical clearing and settlement software. This decision marks a departure from ASX's previous blockchain-based approach, which was abandoned due to delays and cost overruns.

TCS, a leading global IT services company, will be deploying its flagship product, TCS BaNCS for Market Infrastructure, to replace ASX's existing platform. This modern and proven solution is expected to bring several benefits to the Australian market, including:

• Enhanced scalability and resilience
• Reduced operational costs
• Improved efficiency and automation
• Greater flexibility and adaptability
• Enhanced security and compliance

The new platform will be implemented in two phases. The first phase, expected to be completed in 2026, will focus on the clearing service. The second phase will address the settlement depository and sub-register services. This phased approach is designed to minimize disruption to market participants and ensure a smooth transition.

The decision to partner with TCS has been met with positive reactions from industry experts. Analysts have commended ASX for taking a practical and pragmatic approach to modernizing its infrastructure, emphasizing the importance of using proven technology and minimizing customization.

The overhaul of ASX's clearing and settlement software is a significant step forward for the Australian market. By leveraging TCS's expertise and proven technology, ASX is positioning itself to meet the growing demands of market participants and ensure the continued stability and efficiency of the Australian financial system.