Market Makers + FI finances?

  • Hi all, I see a lot of chatter on Twitter and on here about FI's securing their finances as a result of them removing FI-backed Instant Sell and hence we should be expecting huge dividend increases. However, my understanding is that FI uses third party market makers to buy/sell futures also - does anyone know how this works financially for FI? Presumably they are paying a fair whack for such an operation?

  • A strong suggestion that "Caleb Hale" who has been hoovering up players at market buy tonight is a market maker! Suppose it means that traders might spend that money in the platform? So low financial risk for FI?

  • @FootballArgos In my understanding, would market makers not buy the shares at cheaper prices, through ME and then wait for a rise to sell them on for a profit?

  • @FootballArgos if a market maker is being introduced and its a "third party" i wouldnt expect them to buy at market price.

  • Don’t think Market Makers have been introduced to the platform yet

  • @Shippers My thoughts exactly

  • @FootballArgos Also, in terms of FI finances, i wouldnt overly stress. There is so much money in the index and alot of trading continues to happening. Realistically i would also say 75% and wouldnt shock me if it was higher than most have enrolled them self in the DRIP, so everyday divs are paid out tends to go back in the index earning FI some more coppers once these shares are sold

  • Thanks for everyone's thoughts. I'm 99% sure market makers are being used currently due to the explanation with the Game Rules, which also specifically mentions them buying at market buy price as one of FI's examples of how they operate.

    I'm just less sure of the financial side of things, as people seem to use the lack of FI-backed IS as a reason that we should demand a huge dividemd increase even though we're in a pandemic etc.

  • @FootballArgos let them demand mate doesnt mean they will get anything. I expect that a generous but sensible increase πŸ™ˆ whatever that is will include a statement where most people will go "ah okay, fair enough". I compare to it at home, I make all sorts of demands in my house, they never get listened too and i still walk through the door every night. At least AC tickles me when he goes to twitter one week and takes it all away the next.

  • This is a topic that has bugged my thoughts quite a lot... My gut feeling is that market makers are in play and probably have been in play for some time... I was originally quite sceptical of them, but @Geronimo159387 appeased some of my initial concerns...

    When it comes to finances, I was way more concerned pre covid. Essentially with the removal of IS they have captured market cap - where as before it was always subject to cash out and could not be relied upon as FI's money as such.

    On the basis of them now owning market cap as opposed to potentially owing it back, they do have way more scope to grow in genuine terms. More marketing, more investment in the product, more payouts.

    It has been massively controversial. I said in another thread last night that there is only so many times that they can take a dump on customers and retain goodwill. I thought about that some more after posting, and they have taken about ten dumps on my goodwill and I am still here just as willing to spend money as ever πŸ˜‚

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