TCS Enhances ASX’s CHESS Programme with Release 1 Implementation for Modernized Market Infrastructure
TCS Partners with ASX to Modernize Australia’s Financial Infrastructure with CHESS Upgrade
In a significant stride towards modernizing Australia’s financial landscape, Tata Consultancy Services (TCS) has successfully contributed to the first release of the Australian Securities Exchange (ASX) Clearing House Electronic Subregister System (CHESS) program. This initiative aims to enhance the country’s critical market infrastructure that underpins post-trade clearing and settlement services.
CHESS plays a pivotal role in the clearing and settlement of trades involving eligible financial products, facilitating the seamless transfer of legal title to securities. The system enables delivery-versus-payment settlement, ensuring that securities and cash are exchanged efficiently between buyers and sellers, as highlighted in TCS’s recent regulatory filing.
As part of the ASX CHESS Project, TCS has introduced its flagship solutions, TCS BaNCS for Market Infrastructure and Quartz Gateway. These cutting-edge tools are designed to support real-time trade novation and netting while adhering to industry standards. They offer connectivity to multiple Australian exchanges and are compatible with ISO 15022, ISO 20022, and FIX messaging standards.
Hosted in the cloud, TCS’s solutions have been benchmarked to process over 20 million trades daily, positioning ASX for future growth with enhanced resilience and scalability. R Vivekanand, President of BFSI Products and Platforms at TCS, expressed enthusiasm about the collaboration, stating, “Together, we have smoothly implemented a world-class platform that sets a strong foundation to drive the future growth and development of Australian financial markets.”
The CHESS Replacement Project is being executed in two phases, a strategic approach developed in close consultation with industry stakeholders to manage change and mitigate risks associated with critical market infrastructure systems. With the successful completion of Release 1, TCS and ASX, along with industry participants, are now gearing up for the second phase of the CHESS Replacement Programme.
TCS BaNCS for Market Infrastructure is tailored to meet the evolving needs of Exchanges, Central Counterparties (CCPs), and Central Securities Depositories (CSDs), supporting comprehensive operations across various asset classes. This includes functions ranging from issuance and clearing to risk management, depository services, and cross-border settlements.
Additionally, the platform supports both omnibus and end-investor accounting, along with multiple settlement models and optimization strategies to effectively manage liquidity across securities and cash. Complemented by TCS’s Quartz solutions, the system offers standards-based industry integration and capabilities for decentralized settlement and tokenization using distributed technology.
With over 35 years of experience in Australia, TCS has established itself as a trusted partner to many of the region’s top listed companies, reinforcing its commitment to driving innovation and efficiency in the financial sector.
As TCS and ASX look ahead, the anticipation for Release 2 of the CHESS Replacement Programme is palpable, promising further advancements in Australia’s financial infrastructure.