NASDAQ Dubai: an international gateway for investors in the Middle

advertisement
NASDAQ Dubai: an international gateway for
investors in the Middle East through TCS BaNCS
Depositories and clearing institutions across the world are challenged
by the increasing complexity of clearing and settlement infrastructure.
Changing regulations, faster settlement times, higher volumes, efficient
risk management and greater transparency requirements are some of
the challenges that necessitate that market infrastructure providers
adopt technological solutions that reduce risks and improve efficiency.
NASDAQ Dubai, the erstwhile Dubai International Financial Exchange
(DIFX), was established with the intent to link investors in its own region
and around the world.
The exchange needed a robust solution that complied with international
standards and would promote international confidence in the Dubai
market. NASDAQ Dubai was seeking a sophisticated system that could
be deployed in a short timeframe and an IT solutions partner with deep
domain expertise, experience and a global presence. TCS was chosen as
the preferred vendor as it offered the right mix of a comprehensive
market infrastructure solution from TCS BaNCS and a long standing
track record of IT deployment expertise across the globe.
About the Client
NASDAQ Dubai is the only international stock exchange in the Middle East. Established
in 2005, the exchange is unique in its region because of setting and following standards
comparable with leading international exchanges. NASDAQ Dubai also acts as a central
securities depository and offers trading in the equities and derivatives market.
Client
NASDAQ Dubai
Industry
Capital Markets
Offering
Market Infrastructure
“We have used market infrastructure solution from TCS BaNCS for all our
post-trade processing since the launch of the DIFX market. We have been
more than satisfied with both the depth of functionality and the level of
service provided by TCS BaNCS. We are excited about the new V3 version as
it includes improved derivatives functionality, and we are looking forward to
receiving an upgrade to this version in early 2009. We look forward to
continuing our strong partnership with TCS Financial Solutions.”
Peter Fitzgerald,
Chief Operating Officer, Nasdaq Dubai
Business Challenge
TCS’ Solution
NASDAQ Dubai was set up as an international stock
exchange when the prevailing trends were in favor of
increased cross-border trading and a worldwide
unification of financial systems. This exchange aimed to
provide a platform from which global companies could
tap into highly liquid investors in the Gulf Cooperation
Council (GCC) states. Apart from shares, structured
products and conventional bonds, NASDAQ Dubai also
offers equity derivatives. As of now, the underlying
stocks of the derivatives quoted on NASDAQ Dubai
span across three exchanges viz., NASDAQ Dubai, Dubai
Financial Market and Abu Dhabi Securities Exchange.
TCS BaNCS was brought in to provide a system that
would provide post-trading clearing services, including
settlement, payments and delivery – all of which could
be accessed by the members of the exchange through
browser-based interfaces. Trading and clearing services
also needed to be error-proof, robust, Straight-ThroughProcessing (STP) enabled and highly scalable.
The exchange was also expected to create an
environment that was free from the regulations and
governance laws that existed in the two local exchanges
in the UAE — the Abu Dhabi Securities Market and the
Dubai Financial Market. Further, the exchange had to be
world-class to be able to attract and cater to the kind of
customers it was looking for.
Given Nasdaq Dubai’s aims of becoming an
international gateway for investors in the region, the
challenge was to provide and execute cross-border,
multi-currency trades followed by quick settlement and
delivery. In addition, product portfolios needed to be
upgraded continuously with new instruments to suit
various customer profiles and the changing financial
environment. The system would have to manage
frequently changing international regulatory
requirements as well. NASDAQ Dubai wanted to
launch its services and be operational in as short a time
as possible.
TCS delivered this system in a record seven-month
timeframe. The footprint covered included:

Exchange clearing in a Central CounterParty
(CCP) model

Over-The-Counter (OTC) trade - creating, matching
and settlements

Risk management

Real-time interface with systems for trades executed

Automated reporting to members based on file
transfers through serial file transfer protocol

Integrated depository and registry
At the core of the system was the market infrastructure
solution from TCS BaNCS. As the solution matched up to
eighty percent of the customer’s requirements and was
easily upgradable, it was easily customized to meet the
specific needs of NASDAQ Dubai.
TCS domain experts provided the vital knowledge that
bridged the business needs of the customer with the
technology deployed. TCS experience in the domain
helped make the enhancements in a way that allowed
for reuse and further upgrades.
Experience certainty
True certainty of success comes from working with a partner you trust to provide
the insight, support and expertise that will propel your business forward. Experiencing
certainty with TCS means you can count on results, partnership and leadership.
Going forward, the solution was enhanced to
handle the derivative market needs of NASDAQ
Dubai and implemented without effecting any
changes to the existing functions of the exchange,
thereby, minimizing the regression testing efforts.
The completely automated and STP-enabled
solution helped the customer reduce time and
cost of operations.
The solution provides for standard and world-class
interfaces for the exchange. Further, its exemplary
interfacing capabilities enabled quick integration
with the changed trading platform in less than five
months Apart from the trading system, the
solution interfaces with SWIFT, provides data to
the members of the exchange to facilitate
automation at their ends, supports a standard
SPAN interface for the derivatives market, and
crucially interfaces with many other peripheral
applications within the exchange.
Results
TCS provided a completely automated solution in a
record seven-month timeframe in 2005, and followed it
up with continuous value and agility, delivering the
following benefits to NASDAQ Dubai:

The entire functionality on clearing, settlement and
depository operations

A robust derivative markets functionality complying
with international standards and cost-effective
settlement methods

A single solution supporting various asset classes in
an integrated model

STP into each business process, reducing the time
and cost of operations

Improved flexibility and scalability

Quick customization and implementation cycle
helping NASDAQ Dubai become operational and
introduce new markets in a short timeframe,
thereby, crediting TCS with a consistent track record
for timely and quick delivery

Regular upgrade capabilities enable NASDAQ
Dubai reap the benefits of evolving along with the
product thus leveraging new capabilities for
introducing new solutions, bringing about
improved user workflows, updated technology, and
a completely agile STP for all transactions
About TCS BaNCS
The product suite for banking, capital markets and insurance enables business transformation
in financial services. Increasing operational efficiency and helping financial institutions stay
agile, our solutions deliver a competitive edge with unmatched certainty. We aspire to be
better than established benchmarks, which is why we have embedded an Alpha (“ ”),
representing superior returns delivered to our customers, consciously and prominently within
our brand. The plug and play, component-based product suite consistently turns in impressive
benchmark results, with a fine-tuned, highly scalable technology architecture that supports
financial institutions with the highest capacities for transaction volumes, peak transactions
per second, and transaction history size. With such a track record, it is only natural that the
TCSBaNCS product suite can help financial institutions of any size gain a distinct,
competitive edge.
For more information, visit: www.tcs.com/bancs
Contact
To know more about us, contact tcs.bancs@tcs.com
Subscribe to TCS Case Studies
TCS.com RSS: http://www.tcs.com/rss_feeds/Pages/feed.aspx?f=c
Feedburner: http://feeds2.feedburner.com/tcscasestudies
About Tata Consultancy Services (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that
delivers real results to global business, ensuring a level of certainty no other firm can match.
TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering
and assurance services. This is delivered through its unique Global Network Delivery ModelTM,
recognized as the benchmark of excellence in software development. A part of the Tata Group,
India’s largest industrial conglomerate, TCS has a global footprint and is listed on the National
Stock Exchange and Bombay Stock Exchange in India.
IT Services
Business Solutions
Consulting
All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content / information contained here is
correct at the time of publishing. No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted or
distributed in any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may violate copyright,
trademark and other applicable laws, and could result in criminal or civil penalties.
Copyright © 2013 Tata Consultancy Services Limited
TCS Design Services I M I 07 I 13
For more information, visit us at www.tcs.com
Download