Do Betting Promotions pay commissions

[steven1976]

Does anyone know if market makers pay commissions?

Ive read both in threads on betangel forum and also betfairs own forum that Betting Promotions for example do not pay commissions. Therefore ill keep my question specifically to them as I understand people may have had access to their financials.

[Euler]

I don't believe there is any evidence that they don't pay commission on Betfair. If you look at the accounts there is even a line in there for 'trading fees'.

[hgodden]

The 'trading fees' might not be commission but some sort of flat fees (or unique profit based fees) that betfair could charge them instead.

If I were betfair, looking to encourage market makers in illiquid markets, then I wouldn't expect them to pay commission when the margins between the back and lay price can be so small.

[steven1976]

"If I were betfair, looking to encourage market makers in illiquid markets, then I wouldn't expect them to pay commission when the margins between the back and lay price can be so small."

I agree, as long as betfair make it perfectly clear to their customers this is the case otherwise they wouldnt be creating a fair market place of "punter to punter".

Lets say someone paying a flat fee of 1 pound a race (as an example), and they can set a market and self match themselves as much as they want, they can distort the market as much as they want also. Bets will show as matched and create an impression which can influence opinions to support them.

People are putting the strange amounts in the markets down to Xmatching but I believe there are entities trading with an unfair advantage. If they offer a flat rate to market makers then it should be made open and available for all to see and participate if they can fullfil the requirements to take on board the flat fees.

Im sure there are fee 60% PC payers who would be happy to become a flat fee payer.

[Euler]

Q1 2012 results out this morning

£170m in turnover £202k in profit (after fees) net margin 0.12%

[steven1976]

I guess after thinking about it, they wont give concessions to their top PC customers over commissions, as they are the ones that get the money on betfairs bottom line the quickest with the premium charges.

[Euler]

Doesn't look like it's going too well: -

Johan Moazed, Managing Director of Betting Promotion Sweden AB (publ) since January 2007, has tendred his resignation. Johan Moazed’s last day as Managing Director of Betting Promotion will be the 4 July 2012. The Board will initiate a recruitment process to fill the vacany after Easter. The Board would like to thank Johan for many years of loyal work with Betting Promotion.

Malmö April 5, 2012

[Euler]

Betting Promotion: INTERIM REPORT Q1 2012
January – March 2012

• Betting turnover: EUR 175,179 thousand (229,011)
• Net turnover after trading fees: EUR 278 thousand (-439)
• Gross margin: 0.16% (-0.19)
• Operating income: EUR -576 thousand (-1,210)
• Operating margin: -207% (0)
• Net income from continuing operations: EUR -593 thousand (-1,253)
• Earnings per share from continued operations: EUR -0.06 (-0.13)