TCS BaNCS Market Infrastructure: A new robust settlement system to align with global standards

 

In February, Strate launched a new system for the settlement of money markets securities. The new system was selected for being a world-class CSD solution for the electronic settlement of securities.

 

The implementation of money markets was the first project to be launched that forms part of a wider programme where Strate will replace its IT infrastructure for all asset classes. The Bonds and Equities asset classes will be switched over at later stages using a phased approach.

 

The new infrastructure offers the market a streamlined service, as multiple systems are consolidated into one. Strate is now in a position to offer more innovative products to the market in a much shorter time, using the new system.

 

The system utilises the Market Infrastructure solution from the TCS BaNCS product suite by Tata Consultancy Services (TCS).

 

Strate has embarked on the next phase in which a new Debt Instrument System (DIS) for the bond market will be introduced. The project is a significant development for the South African market as it is not only a replacement of the current technology, but also the implementation of a new bond clearing, settlement and asset servicing model utilising a Securities Ownership Register (SOR).

 

The new bond technology aims to:

 

  • Reduce business risk;
  • Provide operational flexibility to configure and control various business processes;
  • Support current and new CSD Participants and the broader market’s growing needs;
  • Be flexible to settle all three Bank for International Settlements’ (BIS) settlement models;
  • Cater for international links with other Central Securities Depositories;
  • Have multiple settlement runs to minimise failure; and
  • Provide the ready support for Segregated Depository Accounts (SDAs) and Securities Ownership Register (SOR).

The implementation of this new system and market practice will be in Q1 2017. The new advanced technology for the bonds clearing and settlement system will take the entire market forward using global best practice and standards.

 

Contact:

Iann Seymour-Smith

Head: Operations

+27 (11) 759 5349

 

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