Imagine operating a computer system through which thousands of parties – bankers, brokers, fund managers, clearinghouses, stock exchanges and investors – transfer hundreds of billions of dollars every day. Now imagine executing a total transformation of this system that does not result in significant system or procedural changes for its users.
Such a daunting task was presented to CDS Clearing and Depository Services Inc. (CDS), Canada’s central securities depository clearing and settlement hub. CDS needed to integrate existing systems, shorten cycle times, reduce costs, and create new functionality for the 21st-century investment community. They turned to TCS for help.
What followed was an ambitious three-year engagement to build a new system that represented one of the largest and most complex infrastructure initiatives in Canadian financial services. TCS placed experts on-site at the client’s Toronto headquarters and at our development center in Chennai, India. The nine-hour time difference between locations placed our team on the job 24/7, dramatically collapsing timeframes for building and refining the new applications and systems.
The first priority was to integrate two 25-year-old legacy systems and create a single clearing and settlement platform with powerful, advanced features. We hastened the development by using our proprietary Network Custody Solution (NCS), which automates tasks such as trade settlement, corporate-action administration, registration of securities, claims and rejections, securities borrowing and lending, custody and depository management, and charges and taxes.
This high level of automation dramatically reduced the overall cost of processing securities transactions. It also positioned CDS and the Canadian capital markets to be ready for any industry move to shorten the settlement cycle from three days to one. We helped the Canadian client leap beyond interim solutions to achieve a faster, more efficient and highly user-friendly system for everyone involved in the financial services arena.
- A state-of-the-art solution for Canada’s trading system that is ready for future industry initiatives
- Largest software development project in Canadian capital markets history
- Completed at a cost of $50 million – a quarter of the cost of similar projects
- Delivered on time in a highly complex environment