OCC taps Vermiculus’ microservice-based solution for new platform, Ovation

Rick Steves

“The way that Vermiculus’ designed their risk application fit very nicely with the modular design and use of real-time data in OCC’s new Ovation platform.”

The Options Clearing Corporation (OCC), renowned as the world’s largest equity derivatives clearing organization, has partnered with Vermiculus Financial Technology to enhance its technological capabilities, as part of the development of OCC’s new platform, Ovation.

Vermiculus, a global provider specializing in clearing, trading, and CSD technology, 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.

“The way that Vermiculus’ designed their risk application fit very nicely”

“The way that Vermiculus’ designed their risk application fit very nicely with the modular design and use of real-time data in OCC’s new Ovation platform,” said John Martino, Managing Director at OCC.

Taraneh Derayati, CEO of Vermiculus, said: “For us at Vermiculus, OCC is an ideal customer as we share a visionary mindset of utilizing transformative and modern technology. We are proud to be part of transforming OCC’s technical infrastructure with our best-in-class microservices and continue our relationship with a highly valued customer. Our state-of-the-art system will support OCC in a landscape of changing regulatory frameworks and market requirements.”

The development of Ovation is a key component of OCC’s Renaissance Initiative. This multi-year project aims to overhaul and modernize OCC’s technology infrastructure. Upon completion, it’s expected to streamline operations, enhance risk management tools, and establish a more sophisticated data management system.

Ovation is OCC’s upcoming cloud-based DLT-powered platform

The OCC’s upcoming Ovation platform is a significant development in the financial clearing and settlement space. It is part of OCC’s shift towards cloud-based technology to enhance business agility, operational efficiency, and risk management capabilities. The platform aims to provide OCC with improved resiliency, enhanced security, and increased scalability​​.

Market participants have expressed a need for consolidated reporting and easier access to information, which Ovation aims to address. The platform will offer a more user-friendly interface for viewing intraday transactions and optimize risk management capabilities using real-time data. It will also include APIs for secure and on-demand data access​​.

Ovation is a part of the Renaissance Initiative, a multi-year project to redevelop and modernize OCC’s technology infrastructure. This includes clearing, risk management, and data management systems. The initiative involves expanding the use of cloud technology, subject to regulatory approval​​​​.

The platform is expected to enhance operational efficiencies through process reengineering and automation. It aims to provide high-velocity clearing, settlement, and risk management capabilities while maintaining secure and reliable operations​​.

Ovation will use cutting-edge tools and technologies, including HashiCorp and Kubernetes. The platform’s design involves a complex, interesting architecture with microservices, aiming for a secure, reliable, and performant system​​. A key feature of Ovation is the new DLT (distributed ledger technology)-based system for securities lending clearing. This system will enhance existing infrastructure, increase transparency for market participants, and reduce daily reconciliation processes​​.

OCC plans to educate and engage its members about the new platform, focusing on data messaging flows and formats. The goal is to facilitate a smooth transition and integration with member systems​​. Before its launch, industry-wide testing with OCC’s clearing members and participant exchanges will be conducted. Ensuring preparedness for launch among members and market participants is a critical focus​​.

Vermiculus offers solutions for clearing, trading, and CSDs

Vermiculus is a company specializing in financial technology. They provide technology solutions for clearing, trading, and Central Securities Depositories (CSDs). As a technology provider, Vermiculus focuses on delivering modern, flexible, and efficient systems to financial institutions, particularly in the areas of clearing and trading.

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.

The system’s architecture enables it to integrate seamlessly with other systems, making it a flexible solution for financial institutions looking to enhance or upgrade their risk management capabilities.

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