MCX to release new trading platform in October 2022
The project will be managed by TCS after MCX's current contract with software firm 63 Moons Technologies expires in September 2022.
The Multi Commodity Exchange of India (MCX), a commodity-derivatives exchange, will deploy a new platform in October 2022. The project will be managed by Tata Consultancy Services (TCS) after MCX's current contract with software firm 63 Moons Technologies expires in September 2022.
TCS informed stock exchanges on Thursday about the new commodity derivatives platform.
“We are delighted to partner with MCX in building a future-proof platform to enable this growth," said R Vivekanand, Co-Head of TCS Financial Solutions.
"Our strong presence across the Indian markets, unique market know-how, intellectual property, and ability to put together a world-class solution will help us play a pivotal role in helping MCX drive its transformation,” Vivekanand added.
There are three phases of the platform development, according to MCX's management in the earnings-call for the quarter ended June 30, 2021. The first stage is complete—the hardware is ready, and testing has begun, P S Reddy, Managing Director of MCX India, told equity analysts at the earnings call.
MCX has issued circulars to member-brokers who will be part of mock testing next year for around three months. It has already discussed the new platform testing with up to 300 member-brokers, Reddy added.
The TCS solution will use the Deutsche Börse T7® trading platform to enable high throughput trading. The Deutsche Börse Group is a TCS client, with whom it developed the platform, and has implemented in select engagements, the Mumbai-headquartered IT services company told stock exchanges.
The Bombay Stock Exchange (BSE) also uses the T7 trading platform, Reddy informed equity analysts in the earnings call. TCS will build a new technology core to transform MCX's trading and post-trade functions to support its future growth, it said in the exchange filing.
TCS BaNCS will help transform its post-trade activities such as clearing, risk management, delivery and settlement. Its market infrastructure with its high performance transaction manager (HpTM) will be deployed as microservices. It will also implement TCS BaNCS for securities trading for MCX’s trading members.
"TCS BaNCS’ APIs (application programming interface) and support for global messaging standards will enable easy integration with various participants, sub-systems and ecosystems," the company said. TCS BaNCS will help MCX meet current and future regulatory standards, including emerging regulations around client-level collateralisation, it added.
