India’s largest commodity exchange MCX selects TCS for tech transformation

India’s largest commodity exchange The Multi Commodity Exchange of India Limited (MCX) has selected leading IT services firm Tata Consultancy Services (TCS) as the technology provider for its transformation under Project Udaan. Under this project, TCS will assist MCX in building a new technology core, transforming its trade and post-trade functions besides supporting its future growth and bolstering MCX’s leadership position in India’s commodity derivatives market.

As part of this partnership, the Mumbai-based IT services firm will not only design but also deploy a high resilience and high-performance solution that will integrate multiple systems to transform MCX’s operations end-to-end.  In order to make this transformation successful, TCS will employ the Deutsche Börse T7 trading platform from the Deutsche Börse Group.

Post-trade activities (clearing, risk management, delivery and settlement) will be transformed using the TCS BaNCS for Market Infrastructure with unique High Performance Transaction Manager (HpTM), as per the TCS release on the same. The High Performance Transaction Manager’s (HpTM) unified approach coupled with its integrated real-time risk management and position monitoring besides its collateral and delivery management and settlement capabilities will help MCX in meeting its present and future business requirements.

TCS BaNCS’ APIs for global messaging standards will support easy integration with several participants, sub-systems and ecosystems. Apart from this, TCS will implement BaNCS for Securities Trading for MCX’s trading members to provide them a modern, fast, intuitive user interface and real-time market data feed for trading and post-trade activities.

TCS Financial Solutions co-head R Vivekanand said, “Increasing trading volumes, longer trading hours, new asset classes and higher retail participation are driving forward thinking exchanges and market infrastructure institutions to accelerate their transformation.” He further added, “A large growing economy like India has immense future potential in Commodity markets. We are delighted to partner with MCX in building a future-proof platform to enable this growth. 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.”

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