We are extremely sorry about the issues that you faced today morning on our trading platforms. We have identified what caused today’s issue and hopefully should not repeat going forward. Let me explain what went down today.
At the market opening, especially between 9.14 to 9.20 we have an exceptional amount of activity in terms of logins and order placement. The connectivity between our trading platforms and the exchanges, the bridge, is managed by Thomson Reuters’ Omnesys, an exchange approved OMS (Order Management System) vendor. Thomson Reuters is the largest OMS vendors in India powering several dozen brokers. Almost all brokerages use OMS vendor to power their platforms, albeit at a much smaller scale – both in terms of orders and number of users.
Today at the market open, the OMS developed connectivity issues, which resulted in orders piling up. We witnessed several lakh orders piled up waiting to be pushed to the exchanges. This would’ve been indicated by the “validation pending” status you would have seen. This caused a snowball effect of customers placing more orders to make up for the hanging orders, increasing the pile up exponentially. The Thomson Reuters team tried to bring the pending order queue down, but it wouldn’t happen. Since the OMS is their proprietary system that is licensed out to stock brokers, our technology team does not have any control over the internals of the system. We were in constant touch with several of their teams trying to get a resolution.
This is not the first time such issues have happened, and over the years, we’ve built more and more layers of technology in-house to reduce the dependency on the OMS and other similar systems. In fact, as of today, over 90% of the activity load half a million of our concurrent clients produce every day is handled by our systems efficiently, but the rest of the 10% that still goes to the OMS sometimes acts as the weakest link. Thomson Reuters’ OMS, despite being one of the best in the industry, has struggled to cope with our growth.
Of course, this isn’t us avoiding taking responsibility for what happened today or other incidents in the past. We are your brokerage firm and we are responsible for the services delivered to you irrespective of what happens in the background. But we do not want you to cast doubts on the technology we’ve built, and the immense amount of effort and resources, we’ve invested to bring you the platforms you use every day.
The toughest decision to take as a business at our scale is to change or not. Because every change comes with a business continuity risk. It is very easy to stop taking that risk and be happy with the product offering and wait for years to make small changes. But that is not how we have envisaged the business we are building for you. We want to be the best brokerage firm you can have, and we hope that you will excuse us when we slip-up, and be rest assured that the most important thing we are working on 24/7 is to avoid any downtime during trading hours.
Again, we are extremely sorry.