Betfair Batch Processing?

News, chat and debate about the Betfair betting exchange.
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Anomoly
Posts: 6
Joined: Sat Jan 23, 2016 7:40 pm

Does Betfair Batch process incoming bets every 200ms?

If so, what are the rules that Betfair uses to allocate incoming bets that arrive inside the same 200ms window?

1. If there is $1000 available to lay at 6, will an incoming bet to lay at 6 have the same priority as a bet to back at 1.2 that arrives during the same 200ms window?

2. If two bets from two different traders come in during the same 200ms window, both to lay at 6, one trader lays $2000, the other lays $200, will they both receive pro-rata allocation - $90.91 to trader two and $909.09 to trader one?

3. If trader one, instead, submits two bets during the 200ms window, each for $1000, will they end up treated the same at the $2000 bet in #2?

4. If pro-rata is the process, in the event of a trading situation where good value is sitting in the book and many traders are following a similar low-latency strategy to access that value, wouldn't a good strategy be to submit a larger bet than your optimal fill, and the, if your are "over filled" trade out of it?
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Euler
Posts: 26223
Joined: Wed Nov 10, 2010 1:39 pm

Way back you could call Betfair and it would place that order straight into their Db. But it created an arms race to exploit the free for all so Betfair have changed a lot since then.

My understanding is that there are many API servers and and it cycles through the servers to update them. Though I'd have to refer for the exact process.
sora
Posts: 6
Joined: Tue Dec 08, 2015 3:57 pm

I believe they use FIFO instead of pro rata allocation - so the orders are prioritized by timestamp even if they arrive in the same window.
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

I've always been led to believe it's a first come first served situation too, regardless of the fact they may process bets in batches I'd guess they're still allocated a bet reference upon hitting the servers.

Their 200ms batch processing period is most likely there to allow them time to skim any x-match value before forwarding any remaining scraps to other users to match.
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