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Kuwait Clearing Company selects TCS BaNCS for Central Counter Party Services

Kuwait Clearing Company selects TCS BaNCS for Central Counter Party Services

Case Studies

TCS’s solution will increase liquidity, reduce risk, support new asset classes and deliver innovation to the Kuwaiti Financial Market.

Tata Consultancy Services, a leading IT services, consulting and business solutions organisation, has announced that TCS BaNCS for Market Infrastructure has been selected by the Kuwait Clearing Company (KCC) for Central Counter Party (CCP) Services.

The KCC is the central clearing, settlement, and depository entity for all securities and derivatives traded at the Boursa Kuwait.

KCC also provides registrar and trustee services to companies and investment funds and performs local and regional custody services for both local and foreign investors.

The Kuwaiti financial market is undergoing transformation, which includes transitioning from a gross settlement model to a CCP-based settlement model. This is a pioneering initiative in the Middle East region.

The creation of a CCP is aimed at increasing liquidity, reducing risk, promoting global investments and participation, and facilitating the introduction of new products to the Kuwaiti market.

As part of this transformation, TCS BaNCS for Market Infrastructure will provide KCC with a proven, unified clearing solution for the cash and derivatives markets.

Khaldoun Altabtabaie, CIO and Head of Strategy, Kuwait Clearing Company, said: “Setting up a CCP-based clearing model is another huge milestone in KCC’s strategy to fulfil the Capital Markets Authority’s mandate for market development initiatives in Kuwait.

“We believe that this initiative will further strengthen KCC’s position as the leader of change in the region. It also supports the organisation’s five-year strategy plan that was placed in 2016 with the goal to implement international best practice standards to help Kuwait gain Emerging Market Status as approved by FTSE and MSCI in order to attract more foreign investments.

“In the selection of TCS and TCS BaNCS for Market Infrastructure, we have chosen a proven solution and a global trusted partner with a long-standing association with KCC and the Kuwaiti market.”

R Vivekanand, Vice-President and Co-Head, TCS Financial Solutions, said: “KCC’s selection of TCS BaNCS for the CCP program is an endorsement of our ability to deliver market transformation programmes.

“We believe that our contextual knowledge of the Kuwaiti market, combined with our strong presence in Kuwait across multiple financial institutions, provides a unique opportunity to build a financial ecosystem that is central to our Business 4.0 vision, and deliver exponential value to our customers in the region.”

TCS BaNCS for Market Infrastructure is a multi-asset class solution designed for high performance transaction management. The solution supports comprehensive clearing membership structures, trade and position management, integrated risk management, collateral management, fails management, and securities lending and borrowing; in compliance with global standards and best practices.

The choice of TCS and TCS BaNCS for Kuwait’s CCP initiative further strengthens TCS’s positioning as a transformation partner for such large and complex initiatives. TCS had earlier implemented a modern and robust central securities depository and registrar solution at KCC, as part of its first wave of modernisation.

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