Today for the core risk management system, we rely on a vendor, which is the last piece of tech which isn’t built in-house. This vendor is Omnesys, owned by Thomson Reuters, Refinitiv, Blackstone, and now the London Stock exchange. We hope to replace this with our in-house risk management system in the next 12 months when we can do many things that are impossible today. Btw, almost all stock brokers today use a vendor RMS product. Omnesys is, I guess over 70% of retail and over 90% of institutional broking business.
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Will the in-house RMS also increase the speed of order execution by few milliseconds, specially during peak hours like market open. Sometimes orders take more than 1 second to reach exchange.
Yeah, we think it will be faster.
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Yeah the company which supports NEST Trader terminal
Switching to in-house system may give you access to build a standalone terminal also - looking forward to that
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@nithin - Any reason why the refund since Oct’21 only and not from the date since this peak margin penalty stuff got implemented ( I think it was back in Dec’2020) ?
There was nowhere explicitly written that penalty can’t be passed until then.
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@ShubhS9 Any idea/tentative date until when will the refunds be credited? 75% of my overall short margin penalty (around 34k) were after 11th October. 
Nithin do you ever fear that these detailed, granular rules by the regulator have the potential to make broker systems so complex risking exposure to a black swan event some time in the future? Every time I read your descriptions of your back end systems i get a sense that it has gotten an order of magnitude more complex than the last time you described them. On a bad day, such complexity will be the cause of disaster
I think, we are wrongly reading it.
NSE is mentioning about an earlier circular dated 11,12th Oct 2021 where they remind the brokers to not pass the penalty the the client .
So refund of such penalties should be applicable since the short margin penalty rule was implemented.
@ShubhS9 @nithin - That was very unfair that Zerodha was still charging it to the clients since it was very clear from beginning (from NSE) that it can be not passed to client and they also issue same kind of circular in July 2021 as well.
I have paid around 1.5 lakh to Zerodha for intraday peak margin thing and re-open the ticket with your support team ( [#20210125532310 ) to claim my hard earned money that give me many sleepless nights at that time.
Hoping to get this resolved on priority.
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It is just not us, it is every broker out there. We have stopped for 2 months, but others are still passing on. I have already explained the reason why above.
The issue isn’t with change, the issue is with making many changes quickly. Exposes everyone to technological and operational risk. The risk of having to make changes to the RMS built by our vendor is so high that we have decided to eat the penalty vs risking to make that change quickly.
The risk is higher when changes are to be done at exchanges, clearing corporations, & depositories. They tend to be systemic in nature.
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sorry to say but not the right explanation from a person like you as you know that we have chose Zerodha over others brokers because of some reasons 
You support team is asking to wait for another 6 weeks to get further clarification from NSE on same.
Broker have every right to fight it further with NSE for future case but why a client money has to hold back if the directions are very clear in the circulars till the date.
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Yesterday’s move would have really spiked the IVs and i got a warning message.
i am assuming this would be for the intraday trading i did
Got mixed feelings here, are the brokers charging this intraday peak margin penalty now also ?
@Jason_Castelino last time you got a message like this did you add funds or wait for the broker to levy the penalty ?
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My broker is Zerodha and they didn’t charge me any penalty. Further I got a clarification from them that they won’t be charging any penalty for intra margin balance turning negative.
I didn’t add funds because I had nearly 14 percent of surplus funds at the end of the day.
Great so that means all the other brokers will also fall in line
I am really happy that you have so transparently shared this clarification. Is there a timeline, till when you would be waiting before processing the refunds?
We have started the refunds; we need to calculate the upfront margin penalty and only refund that. You can create a ticket on our support portal.
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@nithin
Super! Thanks a ton!
I had already created a ticket - your support team had kept it open in the “resolution pending” state, since you were pursuing this with NSE. However, I have dropped a reminder on that ticket, given your response on this.
Again - real thanks - this move would help increase my faith in Zerodha by leaps and bounds.[quote=“nithin, post:82, topic:136203, full:true”]
We have started the refunds; we need to calculate the upfront margin penalty and only refund that. You can create a ticket on our support portal.
[/quote]
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Margin penalty is 0.5% for shortfall amounts lesser than Rs 1lk and 1% above Rs 1lk
in context of intraday short index options position, let’s say intraday banknifty straddle:
where margins increased of a already held position, can brokers pass on the penalty to clients at 1% of shortfall?
Thanks.