What's causing the sudden increase in failed trades on Zerodha Kite during peak market hours?

Introduction

The sudden increase in failed trades on Zerodha Kite during peak market hours is a critical issue that demands immediate attention. As we delve into this problem, we'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Our analysis will follow a structured framework, covering issue identification, hypothesis generation, validation, and solution development. Let's begin by clarifying the situation and gathering essential information.

Step 1

Clarifying Questions (3 minutes)

• Given the timing of the issue, I'm thinking this might be related to increased system load. Could you provide more details on when exactly these failures are occurring during peak hours?

Why it matters: Understanding the precise timing helps pinpoint potential system bottlenecks. Expected answer: Failures spike between 9:15 AM and 10:30 AM, coinciding with market opening. Impact on approach: If confirmed, we'd focus on scalability and load balancing solutions.

• I'm curious about the scale of the problem. What percentage increase in failed trades are we seeing compared to normal operations?

Why it matters: This helps gauge the severity and urgency of the issue. Expected answer: A 30-50% increase in failed trades during peak hours. Impact on approach: A significant increase would prioritize immediate action over long-term solutions.

• Considering user segments, are we seeing this issue across all types of traders, or is it more prevalent among certain groups?

Why it matters: This could indicate whether the problem is universal or tied to specific user behaviors or features. Expected answer: The issue affects all users, but is more pronounced among high-frequency traders. Impact on approach: If specific to certain users, we might focus on optimizing particular features or workflows.

• Have there been any recent changes to the platform or infrastructure that coincide with the onset of this issue?

Why it matters: Recent changes often correlate with new problems and provide a starting point for investigation. Expected answer: A recent update to the order matching engine was deployed last week. Impact on approach: This would narrow our focus to the specific system changes and their potential impacts.