Smarkets public API

[vide0star]

Hey guys, few comments:

1) We don't allow self-matching
2) Our volume is indeed backer stake plus layer liability.
3) We calculate "BF" style volume and we might publish it, so y'all can compare, but we haven't decided yet. Comparing the SM vol to BF vol methods, like for like, the SM is much higher.
4) We never artificially inflate the trading volume. A lot of it comes from matched bettors based in the UK fwiw.
5) We do operate a sports betting syndicate, like a lot of companies. BD, Matchbook, etc, operate syndicates. We disclose it in our annual report and to our customers. Happy to answer any questions. We never front run and we treat the customer (very) fairly.
6) Please don't try to s*** an exchange. It might be bad for your health!
7) For a sense of scale, we trade about £400m per month (Smarkets method) and have about 80k customers per year (mostly UK)

[Trading96]

examples of treating customers very fairly?

[LinusP]

Hey guys, few comments:

1) We don't allow self-matching
2) Our volume is indeed backer stake plus layer liability.
3) We calculate "BF" style volume and we might publish it, so y'all can compare, but we haven't decided yet. Comparing the SM vol to BF vol methods, like for like, the SM is much higher.
4) We never artificially inflate the trading volume. A lot of it comes from matched bettors based in the UK fwiw.
5) We do operate a sports betting syndicate, like a lot of companies. BD, Matchbook, etc, operate syndicates. We disclose it in our annual report and to our customers. Happy to answer any questions. We never front run and we treat the customer (very) fairly.
6) Please don't try to s*** an exchange. It might be bad for your health!
7) For a sense of scale, we trade about £400m per month (Smarkets method) and have about 80k customers per year (mostly UK)

I think I am always going to stay away from an exchange which runs a syndicate, its impossible for you to be independent when its all under the same company. We all know Betfair cross match and also seed some markets early on but I don’t personally think there is any issues with this.

Can anyone see the Syndicate being mentioned?

https://files.smarkets.com/pdf/smarkets ... t-2016.pdf

[vide0star]

The Group, through its 100% owned subsidiary, Hanson Applied Sciences
Limited, also provides liquidity on the exchange by entering into algorithmic
trades on the market to enhance the user experience and for profit making
purposes. The positions so arising are closely risk managed. As we grow, our
aim is to offer better prices and further enhance the liquidity of existing and
new markets.

We treat customers fairly by never changing or cancelling orders after a customer order comes in. If we have a price in the market, we of course, honour that price and execution. We also now have 4 or 5 other institutions trading and we're adding about one major market maker a month.

[weemac]

The Group, through its 100% owned subsidiary, Hanson Applied Sciences
Limited, also provides liquidity on the exchange by entering into algorithmic
trades on the market to enhance the user experience and for profit making
purposes. The positions so arising are closely risk managed. As we grow, our
aim is to offer better prices and further enhance the liquidity of existing and
new markets.

We treat customers fairly by never changing or cancelling orders after a customer order comes in. If we have a price in the market, we of course, honour that price and execution. We also now have 4 or 5 other institutions trading and we're adding about one major market maker a month.

That statement is a direct contradiction of what was reported in the first post of the below betfair forum thread from about 2 years ago.

http://community.betfair.com/horse_raci ... 76159&pg=1

The customer concerned actually posted an email, purporting to be from smarkets, stating that "we (smarkets)will be voiding the lays made at a price of 1.01 on the horse Thatsallimsaying as these were clearly the result of a significant user error"

Do you deny the above? I believe it either went to court, or was on the verge of so doing. Your statement would also appear to contradict smarkets' own policy, which was co-incidentally hurriedly amended a very short time after the above betfair forum thread appeared.

https://help.smarkets.com/hc/en-gb/arti ... ets-Policy

An example of treating customers fairly? Input error is as input error does.

By the way, what was the self-censored word in 6) above? I really can't work it out. And whatever it is, it looks like a threat.

[vide0star]

Our erroneous trade policy follows financial markets. eg https://www.nasdaqtrader.com/Trader.asp ... yErroneous

I'm not here to promote Smarkets. I'm on this forum to be a resource if anybody has specific questions about my business. I love betting exchanges, I think the industry can (and should) do a lot better. Please please know I am in this industry to improve it; ripping customers off is the last thing I want to do. We provide liquidity because the product demands it. We make money from it because I have to run a profitable business. We have the some of the best odds of all exchanges (bar special deals). Smarkets is the most open kimono betting company that I'm aware of. Come to an open house, send me an email, read our annual report. We're very forthcoming with information.

[spreadbetting]

Very forthcoming? Looks like you completely skirted giving a direct answer to weemac's questions to me.

[vide0star]

Our erroneous bets policy lays out what we honour and when trades get busted, similar to Nasdaq. It's not cool for me to comment on individual cases for privacy reasons. The OP is very welcome to email me if they are still aggrieved.

Is there interest for me to host a conference call? I'd be happy if you guys want to jump on a chat and you can hammer me with questions.

[ShaunWhite]

Smarkets is the most open kimono betting company that I'm aware of.

That must be the most ridiculous, obnoxious piece of business-speak bullshit I've ever heard.

It's not clever, it's not describing something new, and a prime example of why middle management desperation to sound clever is ridiculed.

'open kimono' FFS get a grip man and stop being such a pseud.

[xitian]

We treat customers fairly by never changing or cancelling orders after a customer order comes in. If we have a price in the market, we of course, honour that price and execution. We also now have 4 or 5 other institutions trading and we're adding about one major market maker a month.

I don't see that as a selling point for an exchange. It should be a given. If it's not a given, then you're just a bad bookmaker.

I expect there's not going to be a massive point in interacting with this crowd until the API is opened up. Most people on this forum will not consider themselves to be recreational gamblers, and therefore will either want to use specialised trading software or work with the API directly. Otherwise there's simply no chance of an even footing against your proprietary trading.

And in relation to the above point - if your recreational betting volume isn't growing then the exchange isn't really growing (no matter how many market makers or traders you add). Alternatively, maybe you're taking us for the mugs you need to join

[northbound]

I expect there's not going to be a massive point in interacting with this crowd until the API is opened up.

+1

[spreadbetting]

Our erroneous bets policy lays out what we honour and when trades get busted, similar to Nasdaq. It's not cool for me to comment on individual cases for privacy reasons. The OP is very welcome to email me if they are still aggrieved.

Is there interest for me to host a conference call? I'd be happy if you guys want to jump on a chat and you can hammer me with questions.

" If the erroneous bet was matched at a price of +-15% of the fair market price at the time, Smarkets reserves the right to void the bet."

How many punters have requested bets voided, and how many bets voided for market makers? 15% is a very small window on fluid betting markets.



"3. Outlier transactions

In the case of outlier transactions Smarkets may, at its sole and absolute discretion and on a case by case basis, carry out investigations into trades beyond the 60 minute reporting window or after events have been settled.

Outlier transactions are defined as bets matched at a price that exceeds +-20% of the determined fair market price at the time the bet was matched.
4. Defining fair market price

When a complaint is filed, Smarkets will use any available resources, including but not limited to, recent trades on the Smarkets exchange and prices available elsewhere at the time, to determine the fair market price at the time the bet was matched. If the erroneous bet was matched at a price of +-15% of the fair market price at the time, Smarkets reserves the right to void the bet.

In addition to recent execution prices and prices available on other platforms at the time the bet was matched, Smarkets may also consider a number of additional factors when deciding whether a bet is clearly erroneous.

These include, but are not limited to, system malfunction, the volatility of the contract, new information becoming available in the public domain that may significantly alter the price (such as team news for a football match), whether the result of the bet had been unconditionally decided before a complaint was raised, whether betting on the market was recently halted and resumed, the start price of the selection and if the complainant had taken any steps to limit their exposure to the erroneous bet.

In cases where Smarkets cannot provide a reasonable determination of the fair price of the contract, no bets will be voided."

[Derek27]

I wouldn't touch it with a barge poll.

If the price jumps briefly from 10.0 to 12.0 and you back it, how long would you have to sit and wait to find out if the bet will be voided?

Do you lay it at 10.0 and risk having your back bet voided?

[vide0star]

I expect there's not going to be a massive point in interacting with this crowd until the API is opened up.

We're adding about one market maker a month and was on this forum to answer questions and clear up misunderstanding. This community is a bunch exchange power users and I respect you guys a lot. Not trying to get you guys as customers, I know you need the power tools that Peter provides.

[vide0star]

Smarkets is the most open kimono betting company that I'm aware of.

That must be the most ridiculous, obnoxious piece of business-speak bullshit I've ever heard.

It's not clever, it's not describing something new, and a prime example of why middle management desperation to sound clever is ridiculed.

'open kimono' FFS get a grip man and stop being such a pseud.

It might be a bit of a new age-y term, but the point remains, can you name a bookmaker or exchange who is more transparent than Smarkets? By open kimono I meant we're very transparent about our financials, how the exchange works, our plans, our views, etc.