TCS wins contract to run SGX Nifty IFSC
Trading platform in Gandhinagar will help Singaporean exchange members to deal in Nifty derivatives at the NSE IFSC, which is likely to be functional from the mid-year
image for illustrative purpose
Mumbai: Tata Consultancy Services (TCS), which controls over 40 per cent of the capital markets infrastructure solutions, has won a contract from Singapore Stock Exchange to run trading and settlement platforms for the upcoming SGX Nifty Exchange at International Financial Services Centre in Gandhinagar.
To be known as NSE IFSC-SGX Connect, the platform will help Singaporean exchange members to deal in Nifty derivatives at the NSE IFSC, which is likely to be functional from the mid-year. Nifty derivatives contracts on the SGX are among the most traded, as they are used by global investors to hedge their exposure to India. SGX Nifty is a joint venture of NSE and Singapore exchange. The contract from SGX is for five years, and is a "significantly large order in terms of contractual value", R Vivekanand, global head of BFSI platforms and products at TCS told PTI on Wednesday without quantifying the contractual value. TCS will provide the foundational platform for Gift Data Connect Programme, he said, adding the platform will be run on its BaNCS Securities Trading solution, on which over 40 per cent of domestic trades are executed now.
The order also involves providing maintenance services, covering the front office, risk management, back-office clearing and settlement modules, he noted. SGX has formed a special purpose vehicle -- SGX India Connect IFSC or SGX ICI to run NSE IFSC, which will go a long way in getting liquidity into the market, Vivekanand said, adding the bourse will act as an executing-cum-clearing broker with trading and clearing membership of NSE IFSC.
While SGX Connect will be managed through a special purpose vehicle, traders will continue to do the same way of trading as they used to do when the SGX platform was based in Singapore, and the only difference will be that trades will originate and terminate on TCS solutions and then go to the exchange solution at Gift City now, Vivekanand explained. He said the platform can handle 2 lakh trades daily from 12 very large institutional brokers of SGX. But this does not mean it cannot handle more volume, as TCS software on which NSE runs, handles millions of trade volume, he added.
Vivekanand said for TCS, BFSI is the largest business and revenue vertical, contributing over 40 per cent of the topline. In FY21 the BFSI vertical chipped in with $8.864 billion annual revenue.
