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TCS Bancs | Integrated Market Infrastructure

Integrated Capital Market Infrastructure Technology for better risk management

With the traditional barriers for exchanges disappearing, financial markets are moving into a unique phase of consolidation and fragmentation resulting from globalized and next generation exchanges.

This transformation has increased the need for better matching systems and pricing, faster executions, lower latencies and tariffs, and innovative differentiators.

Centralized capital market infrastructure: Need of the hour

Regulators are pushing for more and more products to be exchange traded or at least traded in organized market places and centrally cleared. The need for more transactions to be managed through a robust, centralized capital market infrastructure is now higher than ever before. The ability of Central Counterparties (CCP) to handle failures during the liquidity crisis of 2008 has further vindicated the need for more products to move to Central Clearing as they attain maturity. Innovation starts with OTC markets and OTC derivatives are necessary tools for hedging against commodity and currency volatility. In future, it is going to be increasingly mandated for the products to move to organized market places and central clearing when they mature and attain critical mass.

What clearing corporations need is an integrated clearing solution that can support multiple asset classes and newer, sophisticated derivative products with a short time to market, also offering benefits such as the folllowing:

  • Effective risk monitoring in high volatile markets
  • Efficient, Standard processes with transparent pricing
  • Ability to identify, measure and mitigate risks of OTC derivatives
  • Real-time risk management coupled with CCP based clearing

In addition, the solution should facilitate improved connectivity and information exchange with external systems, superior technology platform and better usability.

For a greener planet…

People around the world are becoming increasingly aware of the need to conserve resources and pass on a greener planet to future generations. Organized market places play a significant role since the Cap and Trade model of handling emissions has proved to be an ideal mechanism to make a start in this direction.

Technology has played a key role in providing a level playing field in markets over the last 20 years, and in making capital markets more transparent, safe and accessible.

Against this background, we can say that using  robust, sophisticated capital market infrastructure technology will enable financial markets to emerge stronger.

To know more about how TCS BaNCS can help you with integrated capital market infrastructure, talk to us at tcs.bancs@tcs.com.