The prodigal son (betfair welcome's me back)

[gazuty]

The short version

Betfair called me yesterday, left message. Returned call today. Betfair to me "Would I bring back the liquidity I used to supply to Australian racing markets, particularly on Victorian races". Me to Betfair "I'll have a look in the Spring racing carnival and think about it".

The long version

Avid forum readers will recall all of the changes to charging structures in Australia. See more here viewtopic.php?f=5&t=6447&hilit=+suspended

While Betfair was figuring out what to do I was subject to a "voluntary" self suspension from certain Australian markets, in particular NSW. See more here viewtopic.php?f=2&t=6193&hilit=+suspended

Betfair called me yesterday and I called them back today. The call reminded me a little of the parable of the prodigal son. Did I remember when I was suspended? Yes. Well, all is now forgiven. In fact, it's more than forgiven, they would welcome me to pursue "any strategy I like on Australian racing". Other quotes "Did I have any ideas to discuss with them? What would it take to get me back?"

I said I'd check in and have a look at the markets in the Australian spring racing carnival.

They said they liked me because I made a lot of money available and added a lot of liquidity to the exchange. I reminded them that I was only one component of the exchange and while I would look on the spring carnival it would take a lot of other people to also come back and then the market would need to be working a way that was profitable for me. Lot's of soothing noises and reassurances back down the line, with the main message, could I ramp it up again and return to the fray in the Victorian and Queensland markets? Please, with a cherry on top. They would then take the data to NSW and other markets and show them what they are missing out on. (ie, could I return to help them).

No mention of commission reductions or special deals for me, so they didn't exactly kill the fatted calf. On the other hand, at least they are being proactive and trying to encourage people back????

[Ethanol]

Betfair called me yesterday, left message. Returned call today. Betfair to me "Would I bring back the liquidity I used to supply to Australian racing markets, particularly on Victorian races". Me to Betfair "I'll have a look in the Spring racing carnival and think about it".

This is good news. More liquidity is always a good thing.

No mention of commission reductions or special deals for me, so they didn't exactly kill the fatted calf. On the other hand, at least they are being proactive and trying to encourage people back????

I think if they are encouraging you back, and you've appeared indifferent to their proposal, you have a good opportunity to negotiate a better deal on your behalf.

If you're a PC payer, then temporarily-reduced commissions probably wouldn't be all that beneficial. Maybe you should ask for some free bets on those markets? If they want your business, they're unlikely to reject your request.

[Euler]

They haven't called me!

But seriously, a curious thing I noticed when the turnover charge was in effect was that a lot of the markets didn't really decline in volume. Which seemed a bit odd if traders were the bulk of business on exchanges.

[gazuty]

Agree that volumes did not drop (or not that I could tell).

However, the nature of the market changed, a little.

Had a small dip over the weekend. Looked ok. Might have a go on a few of the big spring carnival days.

[switesh]

They said they liked me because I made a lot of money available and added a lot of liquidity to the exchange...

The fact that BF sees you as a key liquidity provider I'm really curious as to how much do you put through on average?
Would you mind sharing your average figures please gazuty?

Here are mine:
Operating with a bank of 1.5k, yesterday I put through slightly under 100k (back & lay) in 20 races (averaging roughly about 5k per race), but ofcourse I put through much more in Caulfield and much less in other weak courses. My net margin was a bit less than 0.2%.
My figures are obviously small and wouldn't make a difference in the overall liquidity of Aus racing. Hope to bump up my figures now that we're approaching spring.

[gazuty]

Hi switesh

Anywhere from 0 to 2% of the matched volume.

[switesh]

Anywhere from 0 to 2% of the matched volume.

Avg liquidity @ Caulfield Grp3 and Listed was around 500k pre-off official time.
2% of that makes 10k of liquidity provided by you (on avg).

Sounds reasonable. And so do your profit figures given your liquidity%.

So I'm about half-way behind you being 1% liquidity provider. But nowhere near half-way in profit margin.
Nice to learn these stats.

You've given me something to aim for.

Though I did blunder two weekends prior when I tried to increase my numbers with same strategy that I always use. Time for me to work at new or improvise impromptu.

Oh yes, please do post your PL. This thread could do with some better inspiration than the humble PL's I've posted.