TCS partners with Sernova Financial for post trade processing services

India’s largest software exporter TCS has formed a strategic partnership with Sernova Financial to deliver its next generation cloud-based derivative post trade processing service to enable banks to effectively maintain compliance with the changing global regulatory environment while reducing risk.

The new tie-up combines Sernova’s capital markets expertise, Calypso platform’s capability and Tata Consultancy Services’ (TCS) bouquet of capital markets solutions along with IT-Operations synergies as well as Business Process as a Service (BPaaS) models.

“The Sernova and TCS partnership will enable regional banks and institutional investment managers to efficiently and effectively maintain compliance with the changing global regulatory environment while significantly reducing risk,” said Venkat Ramasamy, executive chairman Sernova Financial, an innovative provider of turn-key post-trade services.

Sernova’s cloud-based clearing service re-creates the shared infrastructure and service elements of traditional clearing brokers and counterparties, providing clients with reduced risk, lower costs, capital efficiency and increased flexibility than with traditional in-house or third party solutions.

The services are delivered by Sernova on the Calypso platform with Business Process Services delivered by TCS. “Current regulations require banks to make heavy capital outlays while they are under tremendous pressure to keep cost-income ratios minimum,” said Susheel Vasudevan, vice president, Banking and Financial Services TCS.

Vasudevan said banks will need to reinvent their operating model to strike the right balance between cost, compliance and risk. “In this context, we believe this will be a game changer going forward and are excited to be part of this journey with Sernova,” Vasudevan added.