There are many OMS providers around the globe, Refinitiv which powers exchange connectivity and order management systems at Zerodha and many other brokers is probably the biggest one. Why Zerodha uses Refinitiv OMS and doesn’t build it’s own connectivity to exchanges and also build it’s own order management system?
The core order management and risk management systems are quite complex to build. Over the years we have taken away most of the load from the underlying OMS+RMS. We will eventually get to a point where we will have our own, but it is still some time away. The biggest issue with their OMS+RMS is to scale and like we just announced, after 2 years of work we have our new data center which went live only last week. This should take care of our scale related issues for some time to come.
6 Likes
@chinmay how did you conclude that the source of the Issues was Refinitiv itself ? As far as I know they are really huge organization serving more than 40,000 Big Institutions in approximately 190 Countries. They are not some small local firm for whom handling the load of zerodha clients trades could be a big issue. They are already handling 100 times bigger trading loads for many of their big clients abroad.
To get some idea about their data handling ability, please note that, they record live streaming real tick by tick data of NSE and make it available for their clients, in real time, which includes every single bid/ask updates and complete market depth etc for all NSE symbols. No other company in India is providing such service. You need to have your own CoLo Servers if you want such real tick data with every single update. You can ask @nithin about it.
It is good that zerodha has updated their data center, but the fault was not at Refinitv end. Please correct me if I am wrong.
Thanks and best regards
Those aren’t my words, I simply copy pasted from official Zerodha article which I have linked in the original post. They are a big organization without a doubt but which broker is close to the traffic Zerodha gets? Recently Zerodha had said that Charles Schwab, biggest broker of US had hit 3 million trades a day in I think March 2020, Zerodha hit 7 million. Yesterday, Zerodha hit 8.5 million. Must be World Record.
Last year, Zerodha processed an astonishing 1 billion orders so yes when it comes to trading load by number of orders, Zerodha may be the biggest broker in the world and by quite a margin.
To get tick by tick data, one must have systems set up in exchange offices. Whoever pays the required money will get access.
2 Likes
Thanks for the update chinmay.
Regarding this, Refinitiv gives you such data without needing any servers setup in the exchange. That is what I was trying to communicate. They have such massive capacities of handling this kind of data load and making it available to the clients in real time. That is really a big deal and no other firm in India is providing such service, as far as I know.
If you do not take it from Refinitiv , then the only other way is to have your own CoLo Servers at NSE. No other choice.
Zerodha has also set up their own system within exchange colo after which they were able to provide 20 depth data.
1 Like