cover story
Transformation benefits
Following a successful go-live, Strate’s clearing
and settlement systems run entirely on TCS BaNCS
for Market Infrastructure as a single multi-asset class
solution, providing a full suite of CSD functions,
comprehensive straight-through processing and
support for ISO 15022 and ISO 20022 standards.
In addition, Strate’s achievement is in providing
a single digital access point to clients that drives
uniformity and efficiencies in business processing
and across IT operations. It also offers common
reference data, uniform messaging standards,
and integrated business processes across all asset
classes for a wide range of CSD, settlement and
corporate actions functions. (See sidebar: “Key
benefits.”)
Strate also now has the ability to support
different settlement models, in line with BIS
standards, on one platform. It paves the way for
the harmonization of business processes across
asset classes, improving overall market liquidity and
being able to deliver faster time-to-market for new
services.
With these capabilities, Strate’s implementation
of TCS BaNCS for Market Infrastructure has become
one of the most modern, efficient, and automated
CSD platforms in the world. And it has opened
conversations with customers that wouldn’t have
been possible before.
“Strate is focused on what will grow South
Africa as a market and investment destination,
and TCS will be an important part of that journey,”
says Naicker. “TCS is part of our team, and part of
everything that we do as a company.”
TCS BaNCS has an extensive presence in South
Africa and other major markets in Africa. Strate,
running on TCS BaNCS, powers settlement for more
than 90% of custody transactions in South Africa. In
addition, leading banks in South Africa run on TCS
BaNCS, and three of the top four markets in Africa
run on TCS BaNCS for Market Infrastructure.
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Key benefits
1. Single platform for clearing and settlement
across asset classes
Improves efficiency and enables new functionality for customers
with different settlement models.
2. Enhanced settlement functionality
Faster settlement times with enhanced settlement functionality,
including real-time settlement.
3. Economies of scale
TCS BaNCS accommodates high volumes of trades, and will scale
easily to meet the expected growth of the South African market,
leading to reduced operating and support costs.
4. Harmonization of systems and standards
TCS BaNCS is designed with the flexibility to accommodate new
business requirements, regulations and standards, including
progressive adoption of ISO 20022.
5. Straight-Through Processing (STP)
TCS BaNCS replaced outdated communication protocols with
ISO standards, which better aligns Strate's stakeholders with
international standards for communication and processing. In
addition, TCS BaNCS has automated manual processes leading to
greater efficiency and higher STP.
6. Business process improvements
The single platform enables improvements in risk management
and settlement times, with capabilities such as tri-party collateral
management across asset classes. Furthermore, even as common
business processes have streamlined operations, specific
functions for each asset class can still be managed and improved
independently for maximum flexibility.
7. Risk reduction
The consolidated settlement infrastructure provides a standardized
interface with customers, consistent reference data, common
processes, and higher visibility during settlement, all of which
contribute to lower risk. In addition, Strate’s technology and
operations staff can ensure adherence to international standards
and best practices.
8. Application flexibility
Parameterized business processes enable quick time to market
for new products, and the flexible architecture supports rapid
solution development to meet new market requirements or to
add additional asset classes, should the need arise.
9. Single user interface
Single interface for Strate's business operations users to access
information for all asset classes together.
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