The Bermuda Stock Exchange has chosen Vermiculus Financial Technology to deliver microservice-based clearing, settlement and depository system to the Exchange.

The new BSX CSD systems are based on Vermiculus VeriClear, an elastically scalable real-time product solution ensuring the highest possible performance as well as seamless integration with surrounding systems due to its modern and unique microservice-based architecture.

The BSX solution will be scalable and optimised for operational efficiency, security and user-friendly interfaces.

The announcement was made by Vermiculus Financial Technology, a global provider of trading, clearing and CSD technology

Gregory Wojciechowski, president and chief executive officer of BSX commented: “The new BSX CSD systems will provide BSX with a next generation platform to support our growth strategies.

“The new systems enable BSX to leverage Vermiculus' state-of-the-art clearing technology and offer a suite of services to ensure continued best-in-class customer service.

“The user-friendly interface and modern technology will allow us to provide a more seamless work flow experience for our members.”

Taraneh Derayati, CEO of Vermiculus, commented: “We are pleased to offer state-of-the art CSD systems that can meet the evolving needs of BSX both now and in the future.

“Vermiculus is known for providing scalable post-trade systems that support the changing market needs and requirements of our clients. It is always inspiring to work closely with a customer that shares our commitment to innovation.”

VeriClear for BSX will improve and enhance system functionality, encompassing both clearing and depository functions for fixed income and cash equity securities including comprehensive corporate action services for the entire post-trade work flow. The launch of the new BSX CSD systems are subject to regulatory approval.

The depository also maintains an inventory of all investors, offering comprehensive inventory management capabilities. This includes dematerialisation/rematerialisation with an approval flow, involving the company's Registrar Transfer Agent.

The depository also facilitates transactions such as pledging, transfers, and restrictions. Additionally, the system supports portfolio valuation and provides long-term historical data for all required data sets.

On the clearing side, the system thoroughly tracks all trades and settlements until settlement instruction generation in conjunction with the trading system which continuously monitors exposure of trades against the available collateral position through an Excess/Deficit monitoring service.

The Bermuda Stock Exchange is a wholly owned subsidiary of Miami International Holdings, Inc.