Tata Consultancy Services to transform Muscat Clearing and Depository’s operations with digital solutions

In a strategic move aimed at strengthening Oman‘s financial ecosystem, Muscat Clearing and Depository (MCD), the central securities depository of Oman, has partnered with Tata Consultancy Services (TCS) to modernize its operations. The collaboration seeks to transform Oman’s capital market infrastructure through advanced technology solutions, paving the way for a more robust, efficient, and digitally-driven financial landscape.

TCS will deploy its flagship offerings—TCS BaNCS for Market Infrastructure and Quartz—to future-proof MCD’s operational capabilities. This partnership signifies a major step in Oman’s ongoing efforts to enhance market functionality, expand capital market services, and improve customer experiences through digital transformation.

How will TCS transform Oman’s capital market infrastructure?

Tata Consultancy Services will play a critical role in reshaping Oman’s capital market infrastructure by introducing cutting-edge digital solutions. MCD, which currently provides comprehensive clearing, settlement, and depository (CSD) services to all market participants, will benefit from TCS’s global expertise in modernizing financial systems.

At the core of this transformation is TCS BaNCS for Market Infrastructure, a sophisticated multi-asset CSD solution designed to support central securities depositories, central counterparty clearing houses (CCPs), exchanges, and central banks. This solution offers end-to-end services, including settlement, asset servicing, and investor management, across diverse asset classes.

Additionally, TCS will implement Quartz, a platform known for its advanced capabilities in blockchain, smart contracts, and risk management. Quartz will facilitate seamless integration between MCD’s internal systems and external stakeholders, such as stock exchanges and investors. This integration will enhance transparency, reduce operational risks, and support real-time processing, ultimately improving the efficiency of Oman’s capital markets.

What does this modernization initiative mean for Oman’s financial sector?

This modernization initiative in Oman represents more than just a technological upgrade; it’s a strategic effort to position Oman as a competitive financial hub within the Gulf Cooperation Council (GCC) region. The partnership between MCD and TCS aligns with Oman’s broader economic vision, which emphasizes digital transformation and innovation as key drivers of growth.

By leveraging TCS’s expertise, MCD aims to introduce advanced market features that will attract both local and international investors. These features include enhanced risk management frameworks, robust central counterparty clearing mechanisms, and improved collateral management services. The adoption of cloud-based technologies and digital platforms will also improve scalability, security, and operational resilience.

Mohammed Al Abri, CEO of Muscat Clearing and Depository, highlighted the importance of this collaboration, stating, “TCS is experienced in deploying mission-critical solutions globally, with several successful implementations in the Middle East. We are confident that this partnership will enhance Oman’s capital market infrastructure, introduce innovative features for market participants, and support the expansion of our financial ecosystem.”

Why is TCS the preferred digital transformation partner in the Middle East?

Tata Consultancy Services has a well-established presence in the Middle East and Africa (MEA) region, making it a trusted digital transformation partner for numerous financial institutions. With operations in nine MEA countries and a workforce of over 9,000 professionals serving more than 150 clients, TCS has consistently demonstrated its ability to deliver large-scale, complex digital projects.

TCS’s success in the region is underpinned by its focus on innovation, client-centric solutions, and deep industry expertise. The company has been recognized as a Top Employer by the Top Employers Institute for eight consecutive years in the UAE, Saudi Arabia, and South Africa. This recognition reflects TCS’s commitment to nurturing talent, fostering a culture of excellence, and driving technological advancements.

R Vivekanand, President of BFSI Products & Platforms at Tata Consultancy Services, expressed his enthusiasm about the partnership, stating, “Our collaboration with MCD is a testament to the success of TCS BaNCS for Market Infrastructure in delivering transformative programs worldwide. Our global knowledge, combined with our innovation leadership through Quartz and dedication to the GCC markets, positions us as MCD’s ideal partner for this transformation.”

How will the partnership impact Oman’s capital markets?

The partnership between MCD and TCS is expected to have a profound impact on Oman’s capital market infrastructure. By embracing digital transformation, Oman will be better equipped to meet the evolving needs of investors, regulators, and other market participants.

One of the key benefits of this modernization initiative is improved operational efficiency. The integration of TCS BaNCS and Quartz will automate critical processes, reduce manual intervention, and minimize the risk of errors. This will lead to faster transaction processing times, enhanced data accuracy, and more reliable market operations.

Furthermore, the adoption of advanced risk management tools will strengthen the resilience of Oman’s financial system. Enhanced central counterparty clearing capabilities will mitigate counterparty risks, while robust collateral management solutions will improve liquidity management. These enhancements will contribute to greater market stability, investor confidence, and overall economic growth.

What’s next for Oman’s capital market modernization?

As Oman continues its journey toward digital transformation, the partnership between MCD and TCS sets the stage for future innovations in the financial sector. This collaboration not only addresses current market demands but also lays the groundwork for emerging trends such as blockchain integration, real-time settlement systems, and data-driven analytics.

With TCS’s proven track record in global capital market projects and MCD’s strategic vision for Oman’s financial sector, this partnership is poised to drive sustainable growth and long-term success. The modernization of Oman’s capital market infrastructure will not only enhance the country’s financial competitiveness but also reinforce its position as a dynamic player in the global economy.