Peter Webb – Betting exchange presentation at Ascot


it’s taking every bit of strength
actually for me to stand up here and not say this event is now in play so I won’t
do that but yeah at the thank-you for Tom and Shane and everybody for inviting
me today and allowing me to invite other people as well and I had to have a think
about what I wanted to talk about today and it would have been quite easy we
stand here and and pitch there danger that you or me and I think quite a lot
of people know about angel or me and I will pitch it to you for a minute or two
but what I actually thought I would do is talk to you about how and why you
should cross the desert because actually I think this is probably the most
important thing that we’re going to be talking about today because the reason
that Deckard invited us here is to encourage some growth in the exchange
and I think there’s a lot of relevance with the journey that beds are going
through and the journey that I went through and I will continue to go
through for the rest of my life but what I want to talk to you about is a little
bit I’ll give you my pitch immediately about me and about bed tangel I joined
fair fair it’s funny actually hearing Chris talk because I’m thinking oh you
bastard you probably got in there before me you probably joined before me and and
I’m one of few people actually joined Betfair in the exchange revolution very
early on and I joined in the 18th of June 2004 open I think on the 11th of
June well there are about 2000 I was before you is that great and it was a
funny journey that actually brought me there because I completely didn’t intend
to be there at all and I’ve come to be the same experience that a lot of people
have gone through which was you go through your career you you do your job
you get a bit fed up you have a midlife crisis and you’re looking for another
way or something interesting to do and I’ve been interested in sports from when
I was young I went for you with the story of how I got there but I was
interested in sports I was interested a bit in statistics and I wanted to
something in that arena but in fact it was really financial markets that drew
me to Betfair and to the exchanges and it was almost an accident that I
actually ended up on the exchanges I was just one of the things that happen from
there but from there as soon as I saw the opportunity I started to do
something about it and I really pushed for it because so many times in my life
I’ve seen opportunities come and go and I’m sure we’ve all had this story of
seeing an opportunity and thinking that’s a great idea but for most of my
life that’s all that I’ve done it so I’d say that’s a great idea and then you’d
see this guy in the press six years later worth five billion
dollars revolutionized some aspect or another and when exchanges came around
actually this was one time in my life where actually said that’s a good idea
and I’m actually gonna do something about it to the absolute shock and
horror of everybody that was around me because when they all said to me what
are you going to do I said well there’s this thing called bed fare and this
concept called betting exchanges and I think that there’s an opportunity there
and of course when you’ve come from a decent career and you’ve got three young
children and a wife and all of those responsibilities when you say to people
that you’re going to go off and do some gambling everybody thinks you’ve
completely lost it and I must admit there were times when I
thought I’d lost it as well but as it turned out everything worked out just
fine so and this was the thing that created
that angel because when I joined the markets there was actually nothing
really going on there was a bit of activity in the markets some liquidity
through there but really we were right at that formative stage so I remember
the exchanges when they were very young I knew some of the characters from the
business then and it was just a neat idea back then nobody really had any
idea of exactly where it would go and I don’t believe that anybody believed it
would reach the stage that it actually did it got much much bigger as much
faster and had a brought their a broader depth than we ever imagined and of
course none of the bookmakers imagined that as well which was brilliant for us
because they were too slow to pick up on it but Beth danger came around because
when I first started using the exchanges my I imagined I would be going into
financial markets so I’d spent a lot of time since about I think it was 93 I got
interested in finance financial markets seriously and in 96 when the internet
was beginning to come together I was one of the first members of a trading forum
for financial markets and I thought that that’s exactly where I was going to go
so when I arrived on the betting exchange scene the first thing that
dawned on me was that actually we needed a better way of doing this I looked at
the markets and I thought they’re in insurance or a commodity market they’re
very very similar to financial markets there nothing like traditional betting
markets so I want to trade them the same so that was my first objective was to
set about trying to understand exactly how I could do something within these
markets but the problem that I had is there were
no real tools to do that there are some very basic tools that have been
developed around 2003 but for what I wanted to do I want two charts I wanted
to plug it into Excel I wanted to analyze different aspects of the market
I want to do fill or kill orders I wanted to do all these things but nobody
had really addressed it seriously at that point so I went round some of the
people that were in the business at that point asked them to adopt these things
but of course producing software is very expensive and at that time in the in the
in the world in that particular world it was very risky to do something like that
why would you spend a lot of money or give up a decent contract to write some
software that may not work that may get banned that there’s no API for and
possibly no future but I was very fortunate that I did a talk in Lombard
Street in London where there was somebody in the audience that had pretty
much the same idea as me so we joined up together and we created bet angel the
little sketch in the middle of the screen you can see here was like some of
my early ideas on how I would expect the product to look and from those really
really I mean when you look back when the software was first developed him and
he was for all of us you know we had very basic
apparatus for what we wanted to do with software so you know we had stunning
features such as being able to click on the screen and place a bet and it’s
being able to you know offer a bet to the market these were a like
breakthrough features back then but as time has gone on its obviously developed
significantly since then and it’s the same for every people within software if
you ever want to see what good competition does for a market have a
look at the API software market because the API software market now is diverse
it’s deep and there’s lots of brilliant implementations of different things and
everybody finds their own little niche within the market competition is good
and but the reason that we created better angel was simply because I didn’t
have the tools around to be able to do what I wanted so we actually went out
and created it and the funny thing is the the guy that I worked with on the
development had a decent contract with BT he didn’t want to leave that contract
so I said to him well I’ll tell you what why don’t we create the software but
we’ll sell it and that will help fund your escape from the corporate world so
that’s what we did so Beth danger was created because of that and lo and
behold in fact we didn’t really need to worry anyway because exchanges took off
and accelerated off into the distance from there anyway so in fact that first
idea of could we possibly earn enough either by trading or by licensing the
software give us enough to to do all of that didn’t turn out to be an issue
anyway and as they say the rest is history
but when we first created bet angel the funny thing about it is there was no API
Betfair struggled for ages to get us on the API because we didn’t want to be
beholden to them but we did join up to the API eventually and tibet DAC as well
and when you look back at that period it’s funny because things like keep bets
the API community developed and then Betfair nicked that and put it into
their product we look at everybody called a greening or greening up or
hedging or variants thereof and of course that eventually became cash out
so in fact I think that the API community needs a big you know thumbs up
for all of the work that they’ve done because they really
driven the market and I think that that everybody here in the API market hasn’t
attempted to do that going forward as well but yeah Beth danger was created
for a completely different reason mainly primarily for us to do clever things and
then obviously the market has developed from there so it’s almost an accidental
creation if software existed at the time at which I joined the market it may
never have been created and our philosophy with it now is that is still
what we do we want to keep pushing the product forward enhancing and adding new
features and when you look at the software it’s pretty much my journey
through the market as I’ve discovered something in football we developed a
football module as I started Louis looking at tennis we developed tennis
when I wanted to mess around – my dears we’ve plugged it into excel and so on
and so forth and it’s now a combination of the
journey that we’re seeing through the market and the feedback that we get from
users on what they want to achieve and it’s it’s become an entity unto itself
now but the thing that’s always been caught to me is trading that’s why I
joined exchanges I have some ideas I thought if I join the exchange I’m
pretty sure I can make money because you look at your average Joe punter in the
street and you’re thinking if I’m on the other side of that I’m pretty sure I can
make some money out of this and that is actually the thing that’s driven me over
the years is the opportunity within the market it’s not necessarily the software
or a bit of publicity it’s the opportunity that drives me and
that’s something that continues to drive me and that’s why I want to talk to you
about how to cross the desert because essentially that’s that’s what I’ve done
several times throughout my entire trading career and that’s what we’re
attempting to do with bet deck as well and the reason I’m going to use this
analogy is because I think it rings true in terms of most people’s journey
through the markets because I just come back from California and one thing I
love doing is at first thing is love looking out the window on the plane I’ll
never get bored of that for some reason you look down from 30,000 feet or so you
see all these people below you and all of the problems that you have suddenly
pales into insignificance but one thing that you notice when you go to the west
coast of America is there’s a lot of barren land there and I remember what
watching a documentary about the early pioneers within America of
course they all landed on the East Coast gradually spread out of it they reached
the Great Plains and it was just endless grasslands and they thought we wonder
what’s over there what’s on the other side and that’s something that’s driven
me for pretty much the whole of my life is it’s not a question of what’s in
front of me but it’s always a question of what’s over there
it’s like walking into a room opening a door and seeing another door on the
other side you sort of think well you know what what’s on the other side I’ve
spent my whole life opening doors and it’s the same when you look at down from
that plane as you’re heading towards the west coast you realize that there’s this
vast playing in front of you which the pioneers found and then there’s a bloody
vast desert as well you know not only did they have to struggle with wagons
across the plain they then sort of sort of thought what’s on the other side of
the mountain it’s like oh great fantastic
it’s a massive desert no water no food or anything but eventually they reach
the other side of the desert and of course there was the Promised Land
there was the land of plenty young efficient Indians more Indians Mexicans
by the time they arrived and but there was a land of plenty they eventually
reached the promised land and for me symbolically Silicon Valley and San
Francisco was the Promised Land for me when I was younger because I was into
technology you hear about all these fantastic technology stories coming out
of San Jose and all of these things and I spend most of my early career
attempting to get to the promised land which was for me was San Francisco and
when I got there suddenly there’s opportunity aplenty you realize that in
fact the trek was worth it going over that I cheated I didn’t have a wagon and
to go through the grasslands and a massive desert I just took a plane but
you realize that in fact you know the promised land is on the other side so my
journey through the markets was was very very similar in that when I first turned
up it was a barren wasteland there was nothing fair but the thing that drove me
all the time was the opportunity that was on the other side and and that’s the
thing that continues drive me and that’s what’s driving me with that tech now is
I get the feeling and I know already that in fact there’s a bigger
opportunity that’s just round the corner so when I joined
Betfair as I mentioned already I joined them very early on I came across them
completely accidentally so there was this thing in London called first
Tuesday so the first Tuesday of every month they get entrepreneurs investors
and techie guys it’s shove them all in the same room and it was a bit like a
Dragons Den scenario everybody would talk to each other things would happen
you’d start learning about ideas you could either fund them be part the stars
are from so and so forth so my interest in this was to go to these meetings and
just learn what was going on I have no perception of this community I didn’t
know how to pitch for money or anything like that I just wanted to be within it
and that was where I first heard about the concept of betting exchanges that
was where the whole idea came across so for me I looked at this opportunity and
I just thought well like that smells like an opportunity to me what I should
have done is said here’s 50 grand give me 50% of the business and it would have
been a different story here I probably wouldn’t be standing here today but um I
know for me it was just a registering a little thing in the back of my head that
said all you know this looks interesting I think there’s probably an opportunity
there so I went there because of my interest in financial markets it
actually left these meetings thinking well actually here’s something new
that’s really exciting I think there’s something that I can do about this so I
joined Betfair very early on but what greeted me was barren lands it was a
desert there was nothing there and liquidity was low there was no activity
in the markets half the market I wanted weren’t there I couldn’t do half the
things that I wanted but I felt that it was worth pursuing that and trying to
see what was on the other side what was over the mountains what could I actually
see but yeah initially there’s the start on Betfair was pretty dull and boring
nothing happened but what actually did happen was as the activity started to
build then things began to really take off so I remember I first I think the
first ever bet my place was on golf rather bizarrely
and then because I knew football really well I started to mess around on
football and then I started to expand from there so gradually you know I went
through the markets began to identify things that were of interest to me and
started to actively participate in it but you can see on this graph that I’ve
displayed here well you may not be able to see because it’s got very small
writing on but you can see the sort of growth that continues to take place over
another ears on the left hand side we’ve got q1 2007 and the right hand side q4
2012 but what happened in the markets is as people started to place just a few
bets in the markets people would come in and trade them and because people traded
them that created more liquidity which meant that people place larger bets and
because people place larger bets it drove all the quiddity and the whole
cycle started to churn up quite dramatically so it’s at this point that
all of the activity really started to come in on on racing and I was thinking
well I would love to do something erasing but I have no idea what it’s
about you know I know that they run really fast there’s a small person on
the back and you know I had no perception of anything you know if you
said made into me I thought it was some damsel in distress in the Disney movie
but I had this desire when I saw the liquidity and racing to do something
about it so I went from some of you have no knowledge of racing and whatsoever
I’ve never placed a racing bet to significant amounts of money through the
market and racing is my mainstay that’s typically where I live most days most
evenings most mornings Boxing Day all bank holidays and so on and so forth
but I think it’s a good demonstration on how actually exchanges can do good
because I’ve never been to a race course never placed a bet on a horse race and
now I do all the time I’ve been to Santa Anita lay down all of the big courses in
the UK we’re here at Oxford today and I love it I enjoy it and you know whenever
I’ve had the opportunity to pitch or talk to people from the racing industry
I’m saying if it wasn’t for exchanges I wouldn’t have paid
you know totally quid for this ticket or whatever it wouldn’t have encouraged all
these other people my family wouldn’t be here so in fact there’s an awful lot of
good that can be done and most of this liquidity is new liquidity it’s money
that never existed before in the market so yeah it’s a it’s a bit of a fast the
the industry ever tells you that it does any harm because it doesn’t it always
feels good you grow the total market it’s a completely different nations for
as I’m concerned we are all aware of the sports book exchange situation and you
have casual punters and you have people have want to do something more serious
or perhaps automated and the whole market is grown because of that but also
if you look at the contribution that traders make you know sometimes traders
get a bit of a bad name but I don’t think that that should be an issue at
all because when you look at the objective of a trader it’s very
different from your casual punter or even a serious punter the casual punch
or the serious punch was looking at value traders very often do not have a
concept of value they’re seeing what’s going on in the market
they’re trying to anticipate that and they’re trading what they see but they
don’t know whether this horse is going to be value at seventy four ninety four
they really don’t understand so if you actually look at the at the contribution
that people make this would this was information that was publicly available
you can see that on this particular occasion this trader made nearly quarter
of a million pound which sounds absolutely immense but if you look at
the figure on the Left this is the amount of turnover that he used in the
racing market to make that money he actually had to put through one hundred
and fifty million pounds to make that quarter of a minimum so if you flip this
upside down and invert it in terms of the traders contribution to the market
you can say that he made 0.16 percent return on the amount of money that he
put through the market or if you’re a bit clever about it you can say that for
every pound of profit that he took from the market because that’s what people
tend to say when they’re trying to represent raters negatively he actually
generated 611 pounds of liquidity 611 pounds that somebody could bet on
take value on automate their beds do any number of things of which this
particular trader would have no concept of he was there he got his pants worth
of profit but in order to do that the market had the opportunity to bet
against him to the tune of six hundred pound and this is where trade is an
advanced activity really drive growth on exchanges because when that liquidity is
available people will bet to it because of course you try and get six hundred
pound on something that’s steaming in one course today and the price will
shorten immediately if they take your bet at all try and do it online and your
bet will probably be rejected if you do it on exchange and your bet will get
matched the guy on the other side has to take that risk so it’s a very very
efficient risk mitigation system and if you flip it around again you can say
basically that a thousand pounds were from the quiddity on this occasion not
everybody’s the same will generate a thousand pounds worth and liquidity will
cost about 1 pound 64 in losses which is tiny so you actually think we need a
bigger share of that I mean we should be paid for doing it so um but this changes
our view on exactly what an exchange should be I’ll read this out to you this
was a brilliant post that was done by a guy called Almeida many years ago and if
you ask me what an exchange should be this is what it should be guy walks into
shop 2010 is pleased the other guy replies oh you’d be better off putting
that on it on an exchange it could be as much as 40 on there less 5% Commission
gives you 37 to one guy replies ok I’ll have a look at that that’s the exchange
proposition it’s as simple as that you know you will get a better price you
will get matched and so on so this guy posted this in September 2008 I’m sure
people in the room will remember that date if there are on bet there and the
proposition changed from that point so the guy walks in the shop says 2010 is
please and the other guy replies I’ll read this out in its fall I’m going to
have to turn and face it you’ll be better off putting that on an exchange
as it could be as much as 40 on there let’s your Commission which is net
winnings multiplied by the market base rate after your discount rate is
converted from your points total which applied to the market base rate
unless of course you’ve taken a holiday when your points about others will not
be crediting your discounters over remain the same but you could be subject
to a 15% decay however if you win you may qualify for
an additional charge of up to 60% which dependent on your forthcoming weekly
profit in relation to the commission you paid on a lifetime basis now when there
is Commission an implied commission connected by 3% now not the full market
base rate at the end of the week you’ll find out what price you got which
excusive depression is crap nobody wants that people want a place a bet be
matched and that’d be the end of it okay yes there’s a bit of commission thank
you there’s a couple of other things but that doesn’t matter in the scheme of
things they just want to get a better price if you implement a model like that
that’s gonna run into trouble eventually that’s gonna be a big issue for you
eventually and what I want exchanges to be is what
we saw originally and that’s you know word-of-mouth was the biggest thing that
grew exchanges in the days when I was first around because people would say
what price on England then you say go over here you’ll get a better one
they’ve all processing them don’t worry about it just place it here it will be
better and that’s that’s where we needs a bit and I’m hoping that that’s where
Beth tack I can be taking us over time as well so if you look at what’s
happening on been tagged I’ll stick my hand up here and say that I didn’t join
their deck immediately so you definitely beating on that but I sort of dabbled
with that dag didn’t do anything seriously and then in 2008 was when we
produced the first version of Betts angel pathetic
and thanks to Beck tech support we were able to launch that for free but again
not a great deal changed if I’m completely honest around that time
liquidity was growing it wasn’t accelerating massively but then in 2011
we got another kick which then made us produce more up-to-date version of
better engine we released a brand new version this year as well and we’ve kept
it up today since then and in 2011 it all changed for me because I realized
then that I really had to take that DAC seriously and that was when I really
start to increase my activity on better and if that was effectively in terms of
what we’re looking at in terms of the presentation
who is when I cross the desert because I’ve been looking at the desert and
wondering what was on the other side for ages but the desert looked big and vast
and it was pretty dry so in 2011 that was when I got the kick that I needed
and I started I jumped on the horse and started riding across the desert and
immediately and I thought I’d put these up here to give you some context
immediately I realized that there was an opportunity there and there was stuff
that I could do so these are just three screenshots from results that I got by
trading or Alaska in June 2011 and the interesting thing that’s happening on
that deck now especially in recent years is that the markets are getting much
more liquid and the film rate is improving Shane mentioned fill rate
earlier and what that’s critically important for the sort of activity that
I do and lots of people in the room are like let’s do the chance of getting your
bet matched is increasing all of the time and that’s opened up much bigger
opportunities only in terms of direct participation in the market and that’s
primarily where I’m at that’s what I want to do so yeah markets more liquids
turnovers improving but also we noticed that it’s easier to identify quality on
bed tack for some reason I can’t explain to you exactly why the reason for that
is at this particular moment in time I’m sure I’ll find out eventually
but it’s getting easier to identify quality on that deck markets but in
terms of direct comparisons about Dax competitors there’s hardly any
differential in pricing now between one exchange in another so that’s obviously
a huge benefit as well but the interesting thing is if you look at its
markets elsewhere the ability for them to deviate significantly from the mean
seems to be increasing if you get odd situations this chart that you can see
on here was from the Grand National a few years ago I was laying maan beg dude
in the Grand National this was like you know a big big race massive liquidity
and I actually I actually tweeted and posted in the forum that that’s what I
was doing but the incredible thing that happened was as I was laying it on
Betfair suddenly I couldn’t get matched any longer
and the price shot out so there was me suggesting that people lame on begged
into 20 and as I was trying to do it I accidentally sent the price out to 40
and I’m thinking how is that possible I cannot you know the Grand National one
of the biggest races of the year I cannot be the sole determinant of price
from the ground national and then as soon as I stopped and gave up of course
the price reverted back to north whatever the reason for that it just
showed that the markets were getting weaker there it was easier to push the
price around if you were trying to do an outsize bet and of course that the whole
idea was that on exchanges you don’t want that to happen you want people to
take your orders you don’t want to be restricted by proxy in effect but
ultimately what we’re finding on bet deck now is that in fact that liquidity
that fill rate is improving so it’s presenting more opportunities so I spend
a lot of time like in my birthday and March my kids gave me little thing and I
thought well it’s a monk you know I’ll act all excited and happy they’ve given
me a mug but actually opened it and fell about laughing because as I pulled the
mug out of the container it was a said I love spreadsheets on it and I spent so
much time in spreadsheets that the kids had caught on to this fact and decided
that that was the most appropriate gift for me on my birthday but yeah we spend
a lot of time analyzing money if that’s how I can say confident I could put up
loads and loads of stats and drone on for an hour about how the markets have
improved but I won’t I’ll just summarize some of the key characteristics for you
but if you look at the most favorable days of the week on the left hand side
here we’ve got Tuesday that should be Monday I don’t know why it’s Tuesday I
have no idea one that isn’t Monday it could be I don’t have enough data but
then you can see the graph climbing off as we head off to the right and on the
right hand side we have Saturday which is exactly what you expect the highest
quality racing is on a Saturday biggest markets most liquidity most prize money
everything points to Saturday being the best day so if you look at the graph it
that that pretty much plays out exactly as expect
so that tells me that the markets are getting more favorable that they are
conforming more to conventional markets if we go back eight years ago on don’t
act that probably wouldn’t have been the case but it is happening now we can see
that so yeah if you go on the left-hand side you’ve got Monday Tuesday Wednesday
on the right hand side Thursday Friday Saturday and Sunday
Sunday’s always slightly no liquidity which is why it appears in the middle of
this graph but essentially I know I can turn up to bet back on a Saturday and I
can have a good session so I turn up to a bed tag every Saturday expecting to do
well and that wasn’t the case a few years ago if you look at their typical
volume comparison to other exchanges the blue line that you can see here is
basically plotting out how much turnover does that DAC do in comparison to other
exchanges but you can see that the graph there pretty much conforms to what we’d
expect big races do big volume smaller races do not as much volume but
essentially what we’re noticing is that grunt that line on that graph is
shifting further and further right as we move on so basically the proportion of
turnover that that tack are doing in comparison to other exchanges this
growing with more people using it and more money going into the market the
reason for putting up this graph is that middle line that you can see there is
Irish racing so you can see there’s an anomaly there Irish Racing is much more
dominant from bed down Irish company more presents within the Irish
population and probably it’s its own course as well as driving that yeah so
yeah the on course markets driving that so if you do an Irish race on bed tack
it’s just that much more favourable still that is ahead of the curve for
some reason but yeah what we’ve noticed is both those curves are shifting to the
right in other words they’re getting more favorable as time goes on so that’s
interesting as well and the reason that I monitor and and look at this is
because if I can find favorable markets I’m more likely to do a good job so
that’s what I’m searching for all of the time trying to figure out which is the
best path to cross the desert we get to the promised land so yeah all of the evidence that we got
is pointing towards that and on a personal level I feel that I have
crossed the desert now with that deck it would be very easy for me and others and
for my customers to sort of say well I’ll cross the desert when the desert
isn’t there but the fact is that all pioneers including that early settlers
in the in America had to cross the desert had to cross the plains to get to
the promised land when I looked at that DAC and started
hey I think our hands were forced some accepts and making sure that that
happens but when I first looked at that tech and realize that wasn’t
significantly pretty key for me to do some of the strategies what I actually
did was I just wound the clock back and went back to when I first started on bed
pans well what strategies work then how did I change my behavior to what I do
now so for me it was quite a simple situation I just went backwards in time
started to reinvent and remember all of the stuff that I did in the early days
and starts have built forward from there and I started to build a map to turn
over that idea to the amount of profitability that I had and started
pushing forward from there and what actually happened was I pretty much feel
that I have crossed the desert now I know that it’s going to be a big
contributor to me of the next year over the next few years 2013 to 2014 my turn
I was up 223 percent for 2014-15 it’s going to be significantly high it will
be much much higher this year I don’t know how much that will be some of it
would depend upon what I do in the last month but I look forward to 2016
expecting to do even better again and I know that some people have experienced
the same thing as well in that you know markets this they couldn’t trade a few
years ago are tradable now and it’s viable to do that a much more consistent
and the long-term impact of my activity is that generally I offer bets to the
market so I was very grateful to Shane and everybody forgiving me a lower
Commission for doing that but typically most of my strategy revolves around
offering bets to the market so I am adding liquidity to the market so I
think that that virtuous cycle is very beneficial for both
and I’m being incentivized for doing that now as well which is fantastic but
ultimately my belief is that exchange is just are a much better way of doing
business and I’m grateful to Victor Hugo this Victorian gentleman here for
summarizing what I think about exchanges it doesn’t matter what people do or how
they perceive exchanges or the issues that exchange your space in terms of
legislation and so on and the fact is it’s a bloody brilliant idea and
therefore you know everybody deserves to do it and everybody that’s trying to
make an impact in this market deserves to be given our support as well and as
Victor Hugo said an invasion of armies can be resisted but not an idea whose
time has come and that is what betting exchanges are entirely for me
and that’s what I want you to take away as well is that I think that there’s
still plenty of room for the exchange market to grow I think we need to give
support to people that allow us to do that and we should try and help with
that process as well so thank you for listening to that presentation I hope it
was useful for you I’m gonna be around all day so if you want to ask any
questions on it then you’re welcome to do that but with that I will hand over
to the next presenter thank you much

2 thoughts on “Peter Webb – Betting exchange presentation at Ascot

  1. V interesting summary of your participation in the exchanges.

    As traders, we need to grow competition, and your 'virtuous circle', by offering prices,
    clearly is a win/win.

    Maybe horse-racing is more liquid, because u 'maybe' automate the process, but, I have found on other sports, where its maybe harder to automate, 'in-running' , liquidity is
    still frustratingly low.

    Maybe I will re-look, how I can offer an automated price to the market.

    Thx for the video.

  2. Great presentation, especially the post explaining Betfair's simple premium charge rules. What a barmy and shortsighted way to treat the people who are bringing the liquidity to the site and in consequence the customer base growth.

    It's interesting to look back at the enormous changes. I didn't start until 2004 and it's a different world now. It's very encouraging that Betdaq has moved to the point where prices are little different to other exchanges and liquidity lets you get reasonable sized bets matched. I'm small potatoes but when I can I take my modest sums to Betdaq. I find the site mechanics rather frustrating but if the pricing is transparent and fair I would far rather be on that. Realistically, you have to be on Betfair for event volume as well as liquidity, but now you can make a case for being on both.

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