What is OmneNEST? Zerodha's backend tech that drives their business

Zerodha’s Nithin Kamath took to LinkedIn to write an emotional post about Omnesys, an equity markets backend execution management system. The CEO of the stock broking company noted that Omnesys played an important role in the establishment of Zerodha.

In his LinkedIn post he wrote, “The number of things that have to align for a business to get off the ground and do well is ridiculous. Zerodha could start with a bare minimum capital and no tech background in 2010 only because NSE India offered NOW, a free trading platform built by Omnesys.”

Kamath added that Omnesys has come back ‘home.’ Here he meant that Omnesys was acquired by a bunch of different companies and has finally returned to its original creators.

“Over the years, Omnesys has changed hands many times, and it's finally back home, where I was invited to open their first office—the circle of life. Omnesys was first sold to Thomson Reuters, then to Blackstone-Refinitv, then to the London Stock Exchange, and now back to some of the people who originally built it. They are now called OmneNEST.”

It is worth noting that Omnesys is a backend execution management system (EMS). It is used by a majority of Indian brokers, including Zerodha.

The main goal of an EMS is to execute trades quickly. It is a brokerage firm's direct connection to the equity markets, designed to deliver fast and seamless access to global liquidity and provide traders more complex execution options than the Order Management System (OMS) can offer.

Order management system (OMS) is a software system that facilitates and manages the execution of trade orders. In the financial markets, an order must be placed in a trading system to execute a buy or sell order for a security.

Zerodha, an Indian financial service company, is an online platform to invest in stocks, derivatives and mutual funds company. It was founded by Bengaluru-based brothers, Nithin and Nikhil Kamath. The company also uses the EMS services provided by Omnesys to execute trades.