Consulting

Clearing and Settlement

Conventional businesses are facing newer challenges every day, posed by technology advancements, increasing competition and a complex global business environment. While the trading infrastructure entities continue to strive for operational speed and efficiency, the post-trade domain entities are diversifying into value-added offerings due to the commoditization of settlement services.

Market consolidation initiatives like TARGET2-Securities (T2S) and Link-up, and changes in the European regulatory environment due to MiFID and European Market Infrastructure Regulation (EMIR) are generating sufficient transformative energy to alter the European capital markets. Moreover, the regulatory regime imposed by the Dodd-Frank Act over OTC derivatives is set to streamline operations across the derivatives markets.

TCS clearing and settlement consulting capabilities focus on enabling capital market players to strategize and accelerate their reinvention and adaptation process. Our services are designed to help you build innovative business models, explore new markets and affect business process improvements to significantly improve your RoI, which includes optimizing your IT spends.

Client Challenges

  • Designing robust risk management frameworks to handle trades with different execution models - from high frequency trading to dark pool venues
  • Increasing risk of Inter-Central Counter Party (CCP) and position management with the rising significance of interoperability
  • Automating the OTC derivatives when processing requires connectivity to several service providers, execution venues and CCPs
  • Reshaping of Central Securities Depository (CSD) infrastructure while having to adapt to new market initiatives and conform to business, legal and regulatory requirements
  • Developing and operating an integrated system for different products like equity, derivatives and fixed income to optimize the Total Cost of Ownership (TCO)
  • Adapting to an environment of standardized reporting, as Extensible Business Reporting Language(XBRL) and ISO 20022 gain prominence

What TCS Provides

At TCS, our trading, clearing and settlement consulting services cover the entire gamut of business services, ranging from exchanges, clearing houses, CCP, depositories to broker / dealers, investment banks and custodians.

Working for capital market entities in over twenty developed and emerging markets, our consultants bring an in-depth experience of architecting and delivering mission critical solutions. Our focus is to provide a strong business architecture, process automation frameworks, efficient cost management models and innovative business models to service new customer segments and markets.

Our key offerings include the following:

Clearing and Settlement: Clearing and settlement frameworks, netting and inter-CCP co-clearing model definition

  • Defining inter-operability model to link with others CSDs and market-led utilities like T2S, link-up, the European and US markets
  • Assessing and enabling Straight Through Processing (STP) for CSDs, CCPs, custodians, investment banks and broker dealers
  • Defining risk framework for equities, fixed income and derivatives
  • Developing a portfolio margining framework across asset classes
  • Conducting feasibility assessments for real-time margining
  • Establishing third-party product evaluation frameworks and recommendations

Trading Infrastructure 

  • Defining a business / IT transformation roadmap for trading infrastructure entities 
  • Architecting business models for trading, post-trading, listing, membership, surveillance and information services

Target-2-Securities (T2S)

We provide a TCS blueprint for T2S Transformation: The TCS T2S Transformation Blueprint (Strategy, Model, Adapt, Ready and Transition),  which spans across five distinct phases of the transformation process, is designed to help you achieve a smooth transition from strategy definition to solution implementation.

We help you formulate the business strategy and define the target operating model for T2S adaptation. Our Strategy and Model phase consulting solutions enable you to evaluate your current business environment, perform comprehensive assessment of T2S impact and define a competitive cost efficient strategy for T2S adaptation.

Our core consulting solutions and key activities around these solutions include the following:
T2S Business Transformation Strategy

  • T2S Impact Assessment
  • T2S Adaptation Strategy Formulation
  • T2S Transformation Roadmap Definition

T2S Readiness Assessment

  • Multi-dimensional Assessment covers business, operations, systems, client, market and legal / regulatory views)

T2S Target Operating Model

  • Target State Definition
  • Gap Analysis
  • Implementation Roadmap Definition
  • Organizational Design

Business Value 

Our solutions enable a successful business transformation for market infrastructure entities and capital market participants in the trading, clearing and settlement space across different asset classes. We offer a unique blend of solution components encompassing IT and BPO services and products to suit our client needs.

Our Global Network Delivery Model™ (GNDM) enables you to achieve better risk management, compliance and cost-control while ensuring enhanced predictability in changing market conditions.

We help you attain competitive growth and adopt dynamic business models through the following:

  • Tried and tested solutions to address the business challenges that affect the entire industry landscape
  • Thought leadership insights to address the business challenges that affect the entire industry landscape, with our proven consulting expertise and pool of skilled consultants
  • Launch of new services and products in existing and new markets in record time with our repository of global best practices, reference frameworks and application solutions

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