How i think FI’s finalised order books will work



  • I apologise in advance for my poor editing due to my lack of computer skills. I did this on my phone and it looks terrible but i hope it gets my point across.

    Below is my basic example of how i see order books being implemented into FI:

    0_1595446933933_36FE5499-97D0-4FC8-8FB1-5CCE5EC64DB4.jpeg

    The displayed buy and sell will be the best offers and bids currently available. From there you can see the next orders that have been placed by traders but when you get to a certain point you will see on both sides the number 601 repeated, these are bids and offers issued by FI and the 601 represents the delta. In the offers side this 601 is new share for sale and for every 601 sold the price moves up a penny unless traders add offers on top of it. Same goes for the bid side but it will be shares FI are willing to buy back(at what price FI decide to issue bids will likely be determined on a set spread they have decided)

    Doing their order book this way will mean that the index will be much like the way we knew it before COVID19 and also allows a bid zone like we have with the matching engine but this zone will be between spread set by FI which is the space between where they buy and sell shares directly to and from the trader

    I hope helps people to understand my thoughts on the Nasdaq order book software and not create further confusion and if you still dont have a clue at what im on about at least you can have a laugh at my poor editing and graphics 😂😂



  • That’s how I saw it working from my very basic understanding



  • Cheers for this much obliged - it makes a lot of sense and I can see how it would work!



  • Sadly I don't think it will include shares FI are willing to buy back. That would mean that liability would move back onto the books and would severely damage the value of the company. Otherwise that all seems pretty likely.

    What I'd be most interested in is what value would be displayed in our portfolios. If it's the buy figure then I fear we're not going to solve the current issue where, psychologically, people aren't willing to sell at the sales prices as they are being told the player has a much higher value. If it displays the value at the sell price then we will see some life return to the market, but it's going to mean everyone sees a large paper loss in value over night, so I don't think they'll do that.



  • Thanks for the info on this. Just wondering, what do you think is likely to happen to the market on the day this is introduced! Also, are you saying FI are going to be buying back shares themselves on all players like they did with instant sell?



  • @Black-Wolf said in How i think FI’s finalised order books will work:

    you can have a laugh at my poor editing and graphics

    Knowing FI theyll probably see this and base their design around it, staying faithful to the misaligned and various sized fonts used 😂😂



  • @Black-Wolf why 601...sounds like youre in the know



  • @TeamGB said in How i think FI’s finalised order books will work:

    Thanks for the info on this. Just wondering, what do you think is likely to happen to the market on the day this is introduced! Also, are you saying FI are going to be buying back shares themselves on all players like they did with instant sell?

    I think there will be some volatility at the beginning but it will level out pretty quickly. I think they will buy back shares but at a huge spread to encourage bids to be placed and accepted so that its not something they will do often. Most likely the only shares they are buying back are those hugely out of favour or with little to no demand for



  • @kaka8 said in How i think FI’s finalised order books will work:

    @Black-Wolf why 601...sounds like youre in the know

    Because its a standout number compared to 600, it would clearly display new shares and allow you to identify them. Its less likely traders are selling or buying in batches of 601. If you have ever used Sportstack they list all shares bought and sold by market makers as 401 and it helps you determine the demand. Its basically a way of determining the difference between traders and market makers. I picked 601 based on the assumption that the current delta is 600



  • @Advinculas-Index said in How i think FI’s finalised order books will work:

    @Black-Wolf said in How i think FI’s finalised order books will work:

    you can have a laugh at my poor editing and graphics

    Knowing FI theyll probably see this and base their design around it, staying faithful to the misaligned and various sized fonts used 😂😂

    😂😂

    Its a bit like a kidnappers ransom note



  • This might sort of work for phase 2 (with the exception of FI buying back shares) but I can’t see a full order book operating within a zone like this?

    If FI want to be taken seriously as an alternate asset class then surely they have to remove themselves from the market? Say I think Werner is worth £6. I can’t set that as a sell order until the price creeps up via FI selling shares? Traders have to be in control of the price in future, not FI.

    Also in the example I’ve given, FI is taking all that money for minting new shares but traders can only offer shares for sale below the level that FI sets? I just can’t see that being appealing to traders. And remember that no shares leave the market now (unless a player retires) so do we really want FI minting new shares left, right and centre?

    I could be wrong (I usually am) but to me it has to be as simple as traders setting both the buy and sell price freely, with FI minting new shares at 1p above the highest sell price but that being a flexible value that can change as traders change their highest valuation of the the player.

    Really happy for others to pick holes in this and show me how I’ve got this wrong...



  • @MDJ if they move to alternate asset class it will mean. We have to start paying tax on top of the commission i think its in all our interests that they remain a bookmaker. The above is just an example id imagine the spread in which we operate to be much wider and more populated with orders so tighter spreads overall.I was just trying to explain how FI will mint new shares in the future and also how they may choose to reduce the number in circulation

    IMO footballers are too volatile for an open ended order book. One bad injury would be the equivalent of the liquidators being called in on a company operating on stock market.



  • Hopefully full order books will produce much tighter spreads and the price in our portfolio listing would be the lowest price someone is willing to sell for ?



  • @Black-Wolf As I said, I’m really happy to be wrong on this.

    What’s interesting is that FI haven’t explained any of this yet when they could have been using this time to educate us about the future shape of the product. Does this mean that they haven’t decided how it will look yet? Or would they rather we didn’t know?

    A bit of more openness would be welcome at this stage I think, so we don’t all have to keep guessing.



  • @MDJ I think the lack of transparency is my biggest issue. They must know what they intend to do (if not then I really am worried) so why not tell us in advance?



  • @MDJ said in How i think FI’s finalised order books will work:

    @Black-Wolf As I said, I’m really happy to be wrong on this.

    What’s interesting is that FI haven’t explained any of this yet when they could have been using this time to educate us about the future shape of the product. Does this mean that they haven’t decided how it will look yet? Or would they rather we didn’t know?

    A bit of more openness would be welcome at this stage I think, so we don’t all have to keep guessing.

    Definitely this should be a transition period where we can spend time learning about how we will have to trade before it goes live but instead we know nothing. Its very poor from FI, a few screenshots and some tutorials would put a lot of minds at rest



  • @Black-Wolf said in How i think FI’s finalised order books will work:

    @Advinculas-Index said in How i think FI’s finalised order books will work:

    @Black-Wolf said in How i think FI’s finalised order books will work:

    you can have a laugh at my poor editing and graphics

    Knowing FI theyll probably see this and base their design around it, staying faithful to the misaligned and various sized fonts used 😂😂

    😂😂

    Its a bit like a kidnappers ransom note

    0_1595491273711_upload-329ef9de-2ee9-43d8-9b0d-cb9a7d3c4175



  • @Black-Wolf said in How i think FI’s finalised order books will work:

    @MDJ said in How i think FI’s finalised order books will work:

    @Black-Wolf As I said, I’m really happy to be wrong on this.

    What’s interesting is that FI haven’t explained any of this yet when they could have been using this time to educate us about the future shape of the product. Does this mean that they haven’t decided how it will look yet? Or would they rather we didn’t know?

    A bit of more openness would be welcome at this stage I think, so we don’t all have to keep guessing.

    Definitely this should be a transition period where we can spend time learning about how we will have to trade before it goes live but instead we know nothing. Its very poor from FI, a few screenshots and some tutorials would put a lot of minds at rest

    If anyone is on twitter, just start badgering FI for info. Twitter usually seems to force FIs hand from what i can see.



  • @MDJ This for me, it would benefit the market too. If its coming in September as they've said, they must have decided how it'll look/work.



  • @Black-Wolf said in How i think FI’s finalised order books will work:

    if they move to alternate asset class it will mean. We have to start paying tax on top of the commission i think its in all our interests that they remain a bookmaker.

    That is a very important point; NOT PAYING TAX on any "winnings" is an essential USP for FI to remain attractive & would seriously damage it's future growth prospects if it were to ditch that status. That said I see no reason why they couldn't move more towards pure OB's by using MM's to inject liquidity & provide "last resort" exits, whilst still remaining eligible to be a tax free gambling product, albeit an alternative asset imitator.

    I agree with others that a transition period will be required to allow the market to mature, specifically establishing both depth & liquidity across all sectors of the market. Ultimately most traders should be adaptable & will adjust their strategies to suit almost any market conditions or structure, however this is impossible to plan for if we don't know what future framework FI are heading towards. ROADMAPS NEED DETAILS otherwise everyone will end up getting lost!


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