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Miami International Holdings (MIH) has announced the launch of a fully integrated trading, clearing, settlement, and depository technology platform for the Bermuda Stock Exchange (BSX). This development enhances market infrastructure and expands BSX’s capabilities across multiple asset classes.
The platform integrates MIAX’s proprietary trading technology with a clearing and central securities depository (CSD) system developed in collaboration with Vermiculus. The new system provides streamlined order management, enhanced market surveillance, and automated post-trade services.
“This technology allows us to expand the range of products available”
Thomas P. Gallagher, Chairman and CEO of MIH, commented, “The launch of this platform strengthens our ability to support global market participants. This technology allows us to expand the range of products available to investors while maintaining the speed, performance, and reliability MIAX is known for.”
Greg Wojciechowski, CEO of BSX, stated, “This upgrade delivers an advanced exchange platform that improves trading efficiency, clearing operations, and market transparency. Our collaboration with MIH and Vermiculus positions BSX for long-term growth.”
BSX has integrated this platform to support Bermuda’s domestic capital market while creating opportunities for international investment. The exchange continues to modernize its infrastructure to accommodate growing demand for digital securities and alternative investment products.
Bermuda Stock Exchange deployed Vermiculus CSD system
It was in early Q4 2024 that Vermiculus was selected to provide a new clearing, settlement, and depository (CSD) system for The Bermuda Stock Exchange (BSX). The new system, based on Vermiculus’ VeriClear solution, utilizes a microservice-based architecture to deliver high performance, scalability, and integration with other systems.
The BSX CSD solution supports both clearing and depository functions for fixed income and cash equity securities, along with comprehensive corporate action services. The system aims to optimize operational efficiency, enhance security, and deliver a user-friendly experience. The implementation of the system is subject to regulatory approval.
Key features of the depository system include comprehensive inventory management capabilities, supporting functions such as dematerialization/rematerialization, pledging, transfers, and restrictions. It also offers portfolio valuation and maintains long-term historical data.
On the clearing side, the system tracks all trades and settlements until settlement instruction generation. It continuously monitors trade exposure against available collateral, ensuring effective risk management through an Excess/Deficit monitoring service.
Vermiculus launched enhanced CSD technology, VeriTrade
In September 2024, Vermiculus announced the launch of VeriTrade, an ultra-low latency trading platform that is expected to further strengthen the name of the leading provider of trading, clearing, and CSD technology.
VeriTrade boasts a generic system designed to support all instruments and asset classes while addressing the ever-evolving needs of today’s exchanges and marketplaces.
According to Vermiculus:
- The new ultra-low latency trading platform was built on a cutting-edge microservice architecture
- The system supports both on-prem and in the cloud deployment
- VeriTrade is engineered to rapidly adapt to diverse regulatory frameworks while managing increasing trading volumes and complex order types, all with support of 24/7 operations.
- The system is designed to ensure deterministic order matching with single-digit microsecond response times. This advancement allows traders to execute transactions with unprecedented speed and precision, offering a significant competitive edge in high-frequency trading environments.
New exchange in LATAM tapped Vermiculus for clearing
Earlier in 2024, Nuam Exchange, a collaborative effort that integrates the stock exchanges of Lima, Santiago, and Colombia, partnered with Vermiculus Financial Technology to deploy new core infrastructure.
The Central Counterparty Clearing Houses (CCP) in Chile, Colombia, and Peru will integrate technology built by Vermiculus in a move to streamline operations and help develop the financial markets in LATAM.
The partnership aims to introduce a comprehensive clearing system encompassing trade and position management, settlement processing, collateral, and risk management, along with real-time risk monitoring, margining, and collateral management across all three CCPs.
Nuam Exchange is actively engaging with regulators in the three countries to navigate the regulatory requirements necessary for evolving the CCP regulations in Chile and Colombia and for establishing a CCP in Peru. This initiative signifies a pivotal step towards unifying and enhancing the financial infrastructure in Latin America, promising a more integrated and efficient market landscape.
OCC deployed VeriClear by Vermiculus
Vermiculus, a fintech company based in Stockholm, Sweden, established in 2020, has emerged as a leader in providing technological solutions to exchanges, clearing houses, and central depositories globally. This new alliance with Nuam Exchange marks Vermiculus’ entry into the four largest financial markets in Latin America.
Earlier this year, the Options Clearing Corporation (OCC), renowned as the world’s largest equity derivatives clearing organization, tapped Vermiculus to enhance its technological capabilities, as part of the development of OCC’s new platform, Ovation.
Vermiculus has contributed its VeriClear solution to this venture. VeriClear is an AI-powered, and cloud-native risk system built on a microservice-based architecture, offering elastic scalability and real-time functionality. It enables clearing houses globally to manage their operations in real-time, offering benefits like margin and settlement savings for clients, enhanced risk management, and operational efficiency.
VeriClear is a product offered by Vermiculus. It is a microservice-based, cloud-native, real-time risk system powered by artificial intelligence. VeriClear is designed to be elastically scalable, meaning it can adjust its capacity based on the demands placed on it, ensuring high performance and reliability even under varying workloads.
