TCS’ Solution to Increase Liquidity, Reduce Risk, Support New Asset Classes, and Deliver Innovation to the Kuwaiti Financial Market
KUWAIT CITY | MUMBAI, September 26, 2018: Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS), a leading IT services, consulting, and business solutions organization, has announced that TCS BaNCS for Market Infrastructure has been selected by the Kuwait Clearing Company (KCC) for Central Counter Party (CCP) Services.
The KCC is the central clearing, settlement, and depository entity for all securities and derivatives traded at the Boursa Kuwait. KCC also provides registrar and trustee services to companies and investment funds, and performs local and regional custody services for both local and foreign investors.
The Kuwaiti financial market is undergoing transformation, which includes transitioning from a gross settlement model to a CCP-based settlement model. This is a pioneering initiative in the Middle East region. The creation of a CCP is aimed at increasing liquidity, reducing risk, promoting global investments and participation, and facilitating the introduction of new products to the Kuwaiti market. As part of this transformation, TCS BaNCS for Market Infrastructure will provide KCC with a proven, unified clearing solution for the cash and derivatives markets.
“Setting up a CCP-based clearing model is another huge milestone in KCC’s strategy to fulfill the Capital Markets Authority’s mandate for market development initiatives in Kuwait. We believe that this initiative will further strengthen KCC’s position as the leader of change in the region. It also supports the organization’s 5-year strategy plan that was placed in 2016 with the goal to implement international best practice standards to help Kuwait gain Emerging Market Status as approved by FTSE & MSCI in order to attract more foreign investments. In the selection of TCS and TCS BaNCS for Market Infrastructure, we have chosen a proven solution and a global trusted partner with a long standing association with KCC and the Kuwaiti market,” said Khaldoun Altabtabaie, CIO and Head of Strategy, Kuwait Clearing Company.
“KCC’s selection of TCS BaNCS for the CCP program is an endorsement of our ability to deliver market transformation programs. We believe that our contextual knowledge of the Kuwaiti market, combined with our strong presence in Kuwait across multiple financial institutions, provides a unique opportunity to build a financial ecosystem that is central to our Business 4.0 vision, and deliver exponential value to our customers in the region,” said R Vivekanand, Vice-President and Co-Head, TCS Financial Solutions.
TCS BaNCS for Market Infrastructure is a multi-asset class solution designed for high performance transaction management. The solution supports comprehensive clearing membership structures, trade and position management, integrated risk management, collateral management, fails management, and securities lending and borrowing; in compliance with global standards and best practices.
The choice of TCS and TCS BaNCS for Kuwait’s CCP initiative further strengthens TCS’ positioning as a transformation partner for such large and complex initiatives. TCS had earlier implemented a modern and robust central securities depository and registrar solution at KCC, as part of its first wave of modernization.
About Kuwait Clearing Company (KCC)
Kuwait Clearing Company was established in 1982 by the authorities, to manage and resolve issues related to the collapse of the unofficial stock market at the time, commonly known as the 1982 Souk Al-Manakh crisis. The project required close cooperation with numerous financial and governmental institutions and a few years of diligent work. The successful completion of the project helped KCC gain respect from all parties involved. On August 14, 1983, an Amiri Decree was issued to officially establish the Kuwait Stock Exchange (KSE) as an independent financial institution, supervised by an executive committee. This was a significant milestone for the Kuwaiti market and played an important role in the organization of the Kuwaiti stock market. It provided the foundation for market regulations and the legal structure of clearing and settlement. In 1986, the KSE authorities appointed KCC to act as the clearing, and settlement agent for all security transactions at the KSE. In the same year, in consultation with the KSE, KCC formulated and implemented the necessary mechanisms and procedures for clearing and settlement processes. Since then, KCC has made significant progress in many aspects of its business and systems and contributed significantly to local and regional market development.
About TCS Financial Solutions
TCS Financial Solutions is a strategic business unit of Tata Consultancy Services. Dedicated to providing business solutions to financial institutions globally, TCS Financial Solutions has compiled a comprehensive product portfolio under the brand name of TCS BaNCS. The TCS BaNCS universal financial solution is designed to help financial services institutions enhance end customer experience, enabling them to embrace open and innovative technologies that embody true digital customer engagement. Deployed at more than 450 installations worldwide, it is the largest collection of components, enterprise and consumer apps for the financial industry made available through the cloud, helping firms become more agile and intelligent by leveraging the power of new and extended ecosystems.
To know more about TCS BaNCS, please visit: https://www.tcs.com/bancs
About Tata Consultancy Services Ltd. (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of IT, Business & Technology Services, and engineering. This is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India's largest multinational business group, TCS has more than 400,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $19.09 billion for year ended March 31, 2018 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS' proactive stance on climate change and award winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com.
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