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.
Our trading, 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, European and US markets
- Assessing and enabling Straight Through Processing (STP) for CSD, CCP, 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
TARGET2-Securities (T2S): “Impact Assessment and Transition”
- Defining strategy for T2S adaptation
- Conceptualizing and developing business models on the basis of the reshaping strategy and T2S toolkit
- Analyzing the T2S impact on CSD, custodian, CCP and broker dealer business processes
- Planning and executing test strategy and migration strategy
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