Betfair / LMAX

[Euler]

Looks like Lmax has lost the their top man: -

http://www.egrmagazine.com/news/888472/ ... fair.thtml

[Euler]

Look what Betfair can do when they need to fight for your business!

http://www.lmaxtrader.co.uk/email/passi ... sion-offer

[jimrobo]

I'd still like to try some sort of ladder interface through the lmax api but doesn't look theres a solution at the moment

[Euler]

It's untradable at the moment though as there is no 'true' liquidity on the markets. You only get matched if the price goes right through your entry point. There is obvious seeding of the market, but very little activity.

[jimrobo]

completely understand that. although without some sort of trading platforms I'm not sure why people are going to be attracted to the exchange?

[Euler]

LMAX want people to produce for it but won't fund development or offer incentive to produce for something that is given away free from rivals like http://www.prospreads.com/trading-platform.php, so I think they are pissing in the wind a bit.

[jimrobo]

surely it can't be that hard for them to make a generic ladder interface and have it open source so anyone can tweek it and try it through their api

[andyfuller]

From Peter's Blog:

Betfair’s LMAX loses £13.2m in first year

Betfair’s majority owned financial trading product LMAX recorded pre-tax losses of £13.2m for the year ended 30 April, Betfair’s annual report has shown. Full story: -

http://www.egrmagazine.com/news/

I think LMAX is going to continue to be a burden for Betfair. There are already very good solutions in place in this market and despite the suggestion it’s a new way, most new users have found that the markets are heavily seeded and the fill rates poor. It’s got a long way to go to get to viability. The morphing of Betfair’s core sports exchange model away from its origins isn’t helping either I suspect. Some of the big financial traders I have spoken to have expressed concern with this and are sticking to their well established providers in financials where they feel they know and understand their relationship with their provider.

From a markets view point I am aware that activity is always higher in buoyant markets as people are net long in general. When the market is in turmoil, as recently, people become overtly risk avert and less enthusiastic for this sort of medium. Overall not an ideal environment for a new venture.

http://www.betangel.com/blog_wp/2011/08 ... irst-year/

[superfrank]

Loss Making And eXpensive

[Innertube]

With this and poker they have probably pissed away £30m or nearly their whole annual profit. Perhaps they should be looking to sort that mess out rather than charge customers more.

[payuppal]

I doubt if they went into either with the intention of losing money...

[Euler]

Found this today when browsing: -

http://www.cityam.com/latest-news/goldm ... lmax-stake

[Euler]

Betfair are exiting LMax and it's being bought out by management and investors including Ed Wray.

[andyfuller]

I can't say I am massively surprised they are getting rid of it, it has been like someone holding on to a losing trade and refusing to cut the losses for sometime really.

Not sure I can see it working for Ed and the others either tbh, I like the idea of it but I just can't see them breaking into the market.