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February 2021

The First Microservices-based Clearing System with AI-Capabilities

Today, Vermiculus announces the launch of its elastically scalable, AI-powered, real-time clearing system as part of a portfolio of products for the entire transaction chain. The system is the first to bring together state-of-the-art advances in dynamic microservices architecture with vast experience in clearing house business requirements. The result is an unprecedented real-time clearing system with ultra-scalable performance, capacity, and business functionality – a system that can intelligently grow with increasing industry demands.

We have entered unsecure times that calls for an agile clearing operation. Clearing in volatile and uncertain markets increases the need for the clearing houses to change the way they respond to hot-spots. For years, scaling hardware in production has been a notoriously difficult task for clearing houses and exchanges. Vermiculus new offering addresses this issue and provides a dynamic scalable system that expands and minimizes the hardware needs with smart algorithms. With its Rhythm Adaptor the system reduces the effect of peaks by learning from history and considering upcoming events.

“The use of AI applications in the clearing ecosystem is under-utilized. Vermiculus has broken new ground with its clearing system and offers reduced operation cost by balancing hardware usage and finding anomalies in system outputs using pattern-recognition. Furthermore, optimizing risk profile by intelligent collateral placements, cleansing market data by identifying outliers and suggestions to correct them together with smart portfolio liquidation strategies in default situations are few other examples where the use of AI brings new possibilities.

Vermiculus, with its new product suite is calling for creative use of modern techniques to secure system operations, generate growth and innovation for increasingly complex markets”, says Taraneh Derayati, CEO.

The new system responds to growing competition in the market for the provision of clearing services with its microservices architecture which allows for deployment of single functions such as: margin calculation, trade validation, settlement netting, default management, exposure assessment or a combination of microservices for a fully-fledged clearing system.

With its high availability architecture, the system supports cloud, on-premises, and hybrid deployments to meet all possible performance and regulatory demands. It also allows for zero- downtime deployment when adding and upgrading system components independently.

Vermiculus team members have been pioneers of technical paradigm shifts for the financial industry during the past three decades, allowing exchanges and clearing houses to reach record levels of volumes and business diversity.

“Today we are able to create such an advanced clearing system within months while it took several years before. I am delighted to be part of the team that serves the most demanding customers with the latest technology based on microservices and AI”, says Nils-Robert Persson, Chairman of the board. “This is quality of life.”