SERICA is a new ER-based with congestion avoidance switch algorithm of the ERICA class schemes, which has been developed in order to regulate the ABR traffic of an ATM network. The prime issues of such an algorithmic scheme are the minimization of the oscillating behavior of the solution path and the buffer overflow avoidance. In a steady-state, these issues are achieved by presenting a stable focus operational point of O(1) complexity with zero cell loss. SERICA algorithm is tested and evaluated on a network model with multiple configuration alternatives allowing the Virtual Source/Virtual Destination (VS/VD) property. High performance is obtained as a result of the throughput maximization under prescribed levels of queuing delays. According to the negotiated traffic descriptor SERICA may also determine the level of the non-conformed cells the user may expect. Thus, it may be easily applied as a TCP algorithm, in order to facilitate the use of some differentiated services over the ABR traffic. Finally, the existing end-to-end TCP protocol may be enhanced, since the proposed algorithm provides a suitable rate-based control mechanism for the TCP management.