Australian stock exchange operator, ASX signed a strategic partnership with Tata Consultancy Services (TCS) and Accenture to overhaul its trading, clearing, and settlement system, marking a significant departure from its previous high-profile attempt at implementing blockchain technology, which eventually failed and resulted in a loss of about $250 million.
The estimated cost for the first release (clearing) of the project is between $105 and $125 million, to be incurred over multiple years. With this partnership, ASX will replace its aging clearing house electronic subregister system (CHESS).
In a statement, ASX said: “Given the scale and complexity of the CHESS replacement project, ASX has also today entered into an agreement with Accenture to support ASX’s project delivery in the role of solution integrator. Accenture wil provide additional capability and capacity in technology project delivery and industry expertise.”
Vivekanand Ramgopal, president, BFSI products and platforms, TCS, said, “We are delighted to be ASX’s choice for this transformation. Our selection is an affirmation of our track record in this mission-critical business, continuous investments in our products, and shared vision of how we see the future of Market Infrastructure Institutions in a technology-led world.”
“TCS BaNCS for Market Infrastructure continues to gain traction in the global market with its rich functionality and unique multi-asset class capability across the post-trade value chain. Combined with our fit-for-purpose approach to technology and innovation, this gives us the confidence to deliver a robust future-proof solution stack for the Australian market,” he added.