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June 2023

B3’s New CSD-System Takes its First Steps Towards Walking on Clouds

The winds of change are blowing in the financial industry. B3, the powerhouse of Brazil's financial market, is taking a bold step towards modernization with their move to a cloud-based platform for their CSD-system—and now the project, executed by Vermiculus, is moving along with great strides. This game-changing decision marks a significant milestone in the industry, revolutionizing the way we think about financial systems and propelling us into the future of finance.

The new CSD-system, based on Vermiculus’ real-time clearing platform VeriClear™, is just one piece of B3's larger strategy of moving more of their business to the cloud. This strategic shift will enable B3 to take advantage of the cloud's inherent benefits, such as increased flexibility, scalability, and performance. Additionally, the cloud-based system will bolster the security and resilience of the system, reducing the risk of potential disruptions or downtime. By embracing modern technology and harnessing the power of the cloud, B3 is positioning itself at the forefront of the financial market.


Furthermore, the modernization of the central depository is an important step towards responding to capital market demand and growth in products and services, as well as the increasing number of investors, issuers, and assets under custody. With a scalable capacity and support for the deposit of new types of assets, this new system reaffirms B3's commitment to continuous evolution and providing an excellent service for the entire market.


By implementing a cloud-based depository, B3 aims to reduce the time to market for new initiatives and for the demands of its clients. This technology will provide the infrastructure needed to increase capacity, ease service provision for other market infrastructures, and improve position conciliation for participants. Additionally, the new system will enable B3 for the possibility of easier future expansion into new segments, for example, tokens and fractional shares.

B3's cloud integration marks a significant shift in the financial industry.

With the project well underway, Vermiculus is dedicated to delivering a next-generation system that maintains the high ambitions set by the collaborative team. Following Vermiculus' agile project methodology, the new CSD-system will be developed using a microservice architecture, replacing B3's current depository piece by piece. This approach ensures maximum flexibility, future-proofing B3's business development and maintains a competitive edge. The CSD-system offers a scalable solution, easily adapting to market demand, providing increased capacity for new investors, issuers, and assets. Leveraging cloud technology in combination with a microservice architecture brings additional benefits such as improved position conciliation, timely corporate action announcements, and enhanced service provision to other market infrastructures. With Vermiculus at the helm, this transformative project paves the way for an agile, efficient, and adaptable future in the realm of securities depository services.


The project is off to a great start, with the first release already shipped and the joint Vermiculus and B3 team making rapid progress. The team began with face-to-face workshops held in both São Paulo and Stockholm, where it became evident that their combined knowledge and experience would be a significant factor in the project's success. As a result, B3's new CSD-system is expected to be the most advanced system in the world.


The depository's evolution is part of B3's digital transformation process of recent years, and it reinforces the company's role and responsibility in providing infrastructure that can serve one of the most important markets in the world. As one of the main financial market infrastructure companies internationally, B3 connects, develops, and enables the financial and capital market, and together with customers and society, boosts Brazil's growth.


Several exciting releases lay ahead where B3 gets closer and closer to a cloud-integrated CSD-system. Reaping the benefits of the cloud implemented by Vermiculus, they also take the lead and mark a significant shift in the financial industry, where core systems are slowly but surely becoming more flexible, powerful, and stable whilst always prioritizing security. With the move to a cloud-based CSD-system, B3 and Vermiculus are propelling the financial industry into a new era of modernization and efficiency.