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Omnesys Profile Vision To develop and deploy mission critical software products and solutions for the securities and related financial services sector. Offices at Bangalore, Mangalore, Kolkatta, Delhi & Mumbai. Empanelled Vendor for providing Trading solutions to the members of all the premier exchanges of India BSE, NSE, NCDEX, MCX, ICEX, USE, ACE Omnesys is in the business of providing OMS, EMS, DMA and software access to the various sources of liquidity, ability to provide risk management and account management and integration with various back office and clearing methods First vendor to get the permission to deploy a complete Automated Trading System in Indian securities market. 2
Omnesys Technologies (P) Ltd OMNESYS NEST is one of the largest Order Management Systems (OMS) providers in India. Developed a very well recognized brand and product under the brand name NEST. First vendor to get permission to launch Automated Trading in India NEST currently handles a significant volume (50%+) on the Indian exchanges and is being provided as a ASP solution by multiple exchanges NEST is used extensively in Institutional desks and for algorithmic and prop trading NEST trading screen has been chosen exclusively by the NSE and NCDEX as its trading front end for ASP and SPOT Exchange initiatives High speed, ultra low latency and massive throughput capabilities 3
NEST Overview NEST is a comprehensive broker channel management solution. It is a fully integrated eco-system for securities including Order Management System, Comprehensive Risk Managements System, Supports various types of front ends, Complex Trading Strategies. NEST provides a more open and far more advanced publish-subscribe technology for the highperformance and scalability that brokers require as the trading volume increases. NEST binds all sub-systems like remote branches, sub-brokers, individual investors, institutional clients and proprietary trading desks into an integrated real-time online, multi-channel system. NEST s n-tiered distributed architecture provides a highly scalable platform to develop and implement modules to either enrich the content or add custom business logic. 4
NEST Architecture 5
Market Segment- Proprietary Consists of players involved in Interest Rate Arbitrage, Option volatility Trading The key requirements of this segment include Ease of use Features like Arbitrage Watch Excel Plug-ins to spot opportunities Tools to aid Option Trading Strong Risk Management and position coverage Key users of NEST in this segment are Edelweiss Capital SMC Global Globe Capital Centrum Broking Motilal Oswal Calcutta and Delhi based prop shops 6
Market Segment - Institutional Large brokers with institutional desks Key requirements for this requirement are High Volume trading Features like Index / Basket Trading / VWAP Trading / Order Slicing Fix Connectivity / DMA Solutions Order Management Solutions FIX Routing from Non Indian Markets via FIX Hub EMS Capabilities in the product. Global Distribution of market data Key users in this segment Edelweiss Capital Man Financial Motilal Oswal Kotak Securities HDFC Securities Centrum Capital Religare Antique Stock Broking Emkay Stock Broking 7
Market Segment- Retail This is the largest segment and is estimated to be around 1,25,000 terminals. These are dealers working from the branches of the Broker connected through the VSAT or Leased line networks. Key requirements in this segment are Comprehensive Risk Management Ease of maintenance and use Bandwidth utilization Sales / Support network Following are the key users of NEST in this segment Anand Rathi Securities Edelweiss Capital Centrum Broking ITI FSL NCDEX NCDEX SPOT Way to Wealth Master Capital 8
Market Segment- Internet Fast growing segment due to easy availability of cheap and reliable bandwidth across the country Key requirement in this segment Risk management System Features like Buy Today Sell Tomorrow, NRI trading, Flexi Trade, Call N Trade Connectivity with Banks Thin, Trader like Front end for high volume traders Key users of NEST in this segment are Anand Rathi Securities Edelweiss Capital Centrum Broking Way to Wealth Fullerton Way to Wealth ICDS Securities 9
NEST as a Software Service Traditional software licensing models are obsolete Multiple exchanges, extensive broadband deployments render broker hosting very expensive NEST can be deployed as a Service. Broker enabled to come on to SaS model very inexpensively Broker can scale operations without technology investments Additional features provided on incremental cost basis Pay as you go model Simple operational and support model Can be enhanced to include Global Markets Enables Multi Asset, Multi Geography, Multi Venue Trading Omnesys can provide the service or the software for an exchange to provide the service 10
Exchange Connectivity NEST currently connects via Direct Market Access to the following Exchanges and Segments NSE Capital Markets NSE Futures and Options NSE Currency Derivatives NCDEX Futures NCDEX Spot MCX Commodities MCX - SX Currency Derivatives BSE Capital markets BSE Futures and Options ICEX, USE, ACE, NMCE are new exchanges that NEST also connects Additional exchanges and segments are added on a regular basis. Nest can also route orders via FIX to global markets. 11
Value Added Services NEST is a platform that is licensed to brokers and either hosted at a Data Center, an Exchange or Broker location Once the NEST platform is deployed, Omnesys is able to provide many value added services to the customer. Some of the value added services are : NEST Strategy Scripting language to enable automated trading NEST API (COM,.NET, Java) to provide easy APIs for programmers to access the markets NEST Technical Analysis Charts, Indicator and trading eco system Historical Data NEST FIX Hubs 12
Changing Market Landscape Retail broking software has been traditionally been dominated by Financial Technologies. Other players include Religare Technova (previously Asian Cerc) which was strong in the Internet segment. TCS which was the preferred vendor for MNC brokers. Omnesys is clear market leader in the Institutional Segment Omnesys is the clear market leader in the DMA solutions space Omnesys is the clear market leader in the Automated Trading segment Omnesys through its various offerings is gaining market share in the Internet and Retail space also Omnesys has also started making inroads into the MNC broker space with signing up of premier clients 13
Growth Drivers SaS model gaining acceptance. Faster, Reliable, Cheaper bandwidth will drive the proliferation Growth in Automated Trading Pick up in DMA via FIX and FII volumes New Exchanges like MCX SX, USE, ICEX, NMCE, ACE, New Trading Segments like Currency Futures, Spot Exchanges New offerings like Execution Management Systems (EMS), Matching Engines New products in existing Asset classes New market segments like Domestic Financial Institutions embracing DMA, Automated trading Introduction of Bond Trading, Relaunch of Interest Rate Futures Permission to start Mobile Trading Expected increase in self driven trading via Internet Growth in information dissemination vs other non stock asset classes 14
Clients...select subset from more than 150 customers all over India 15
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