Issuance Curve?



  • Could a more knowledgeable trader than myself explain how the 'issuance curve' will work and what affect if any, it will have on a players price?

    I get that at certain prices it triggers the release of more shares from FI of that player to meet demand.

    Will that not stifle the players price as more shares are suddenly thrown into the mix?

    Equally, is there a similar facility in place when a players value drops to a certain level?

    Thanks.



  • @Dronny-Gaz said in Issuance Curve?:

    Could a more knowledgeable trader than myself explain how the 'issuance curve' will work and what affect if any, it will have on a players price?

    I get that at certain prices it triggers the release of more shares from FI of that player to meet demand.

    Will that not stifle the players price as more shares are suddenly thrown into the mix?

    Equally, is there a similar facility in place when a players value drops to a certain level?

    Thanks.

    Is it not worth just waiting on more info rather than all play the guessing game?



  • @Shippers
    A more pertinent question might be "why is the information not out there, bearing in mind the system is going live tomorrow".

    I thought traders in different markets may have come across this and have some inclination as how it works in practice and what affect it has on prices.



  • @Dronny-Gaz its a fair point but sometimes guessing about these things does more harm than good. People have had a guess but i expect to learn more today/tomorrow.



  • @Dronny-Gaz i have down as FI’s name for the delta and is just the number shares newly minted at each price point depending on the shares in existence. There reason they are calling it the issuance curve though is probably because as we know the delta isnt the same throughout the index it tends to get smaller as players rise in price, in the past we found it varies from 900 to 600.



  • @Black-Wolf
    Is it to stop rapid rises and steep drops.
    As in, they add more shares when demand is high and equally they 'buy back' shares when a players value is diminishing?



  • @Dronny-Gaz try to remember this isnt a whole new index its an alteration to a system that has been in place from the beginning and still is that system just with new terminology and the ability to choose what we are willing to pay and and sell for. Everything else is exactly the same so try not to complicate it for ourselves



  • @Black-Wolf said in Issuance Curve?:

    @Dronny-Gaz i have down as FI’s name for the delta and is just the number shares newly minted at each price point depending on the shares in existence. There reason they are calling it the issuance curve though is probably because as we know the delta isnt the same throughout the index it tends to get smaller as players rise in price, in the past we found it varies from 900 to 600.

    This is exactly my thinking



  • @Dronny-Gaz its just to keep the index fundamentally the same as it always has been



  • Still don't really 'get it'.
    For example as a players value rises through transfer talk or even an in-play goal, at some point in that rise FI step in because it has triggered the issuance share point.
    Won't this stifle rises?

    Equally, what do they do when a players price is dropping?
    Is that where market makers come in?
    Buying back shares at increment points on the downward curve?



  • The trouble with trying to guess is that we have no idea. I have used order books on many platforms, Betfair, stocks, footstock and others and none of them use this new feature. FI are doing things there way which I find very strange as they are getting NASDAQ in but they still want to do things there way. It won't be a normal order book.



  • @Tom7471
    Hopefully that's a good thing. 👍
    More detail would reassure though.



  • @Dronny-Gaz it just means instead of them releasing 100% of shares when a player reaches peak price... they will actually drip feed new shares in at price points offered by users. It's allowing us to effectively list above peak price without stopping their income.

    old school … player A peaks at £5 … the next 600 shares at £5.01 would all come from FI

    new school … player A peaks at £5 .. but user lists 600 of him for £5.10... another user buys 300 … 250 from user, 50 from FI (for example)

    We don't know what the curve is in terms of how many they would release at each price point.



  • @Dronny-Gaz said in Issuance Curve?:

    Could a more knowledgeable trader than myself explain how the 'issuance curve' will work and what affect if any, it will have on a players price?

    I get that at certain prices it triggers the release of more shares from FI of that player to meet demand.

    Will that not stifle the players price as more shares are suddenly thrown into the mix?

    Equally, is there a similar facility in place when a players value drops to a certain level?

    Thanks.

    My dyslexic arse read it as "Insurance Curve"... I thought they were describing a backstop for players who don't have many bids.



  • @Coriolanus said in Issuance Curve?:

    @Dronny-Gaz it just means instead of them releasing 100% of shares when a player reaches peak price... they will actually drip feed new shares in at price points offered by users. It's allowing us to effectively list above peak price without stopping their income.

    old school … player A peaks at £5 … the next 600 shares at £5.01 would all come from FI

    new school … player A peaks at £5 .. but user lists 600 of him for £5.10... another user buys 300 … 250 from user, 50 from FI (for example)

    We don't know what the curve is in terms of how many they would release at each price point.

    I think it may work differently to that. I think FI will be the ones putting the sell orders in 10p above market value. When a player spikes all of the trader sell orders get scooped up and FI shares start selling. At this point traders will be able to put their orders in up to 10p above and I think FI then backs out and will leapfrog those offers to the top of the bid zone again to start minting new shares if those trader shares sell...



  • @Baydog nah mate its a curve... they don't list shares. they just drip feed them in to peoples buys. users dictate the price now



  • @Coriolanus

    I don't see why they have that 10p zone above market price other than it is their way of minting new shares and keeping prices stable. If they are not working in a fluid way then FI could just list 50000 of their shares at market price and everyone is putting their sell orders in above that but will never sell them as everyone will just keep buying the FI shares and the price never moves and no one is selling as FI are offering the cheapest shares and thousands of them.

    FI want a fluid market so they want traders shares selling before theirs. To achieve this I see them operating at the very top of the bid zone at all times and traders are operating beneath them until there is a spike and the market catches up to the FI shares and they can pull out and let the traders sell.. This for me is the issuance curve. Their involvement will work in a curve depending upon demand and they will issue in an upturn and prop up in a down turn



  • @Baydog the bid zone is so users can sell above peak price. what you are describing is just how it works now... but that's not OB. so by letting users sell at new prices FI would be losing sales … to get round it they will now release new shares amongst user sell prices.



  • @Coriolanus

    I think you are underestimating the role that FI via MM will have in the market. FI will still be selling and buying shares back as they were before to control the shares in existence. I see them as covering the top end and the bottom end of the market and we are all fighting it out in the middle



  • @Baydog yes they wil be selling more shares than ever before... you are saying they would sell at £5.10 in my example... im saying they will sell shares at every price point under that.

    buying shares... they should (via mm) just lay a marker down. not actively compete.... just a trigger point create a spread... and hope users fill it. of course... on many cases users wont fight it out... so itl also act as a safety net. just a much harsher one that we used to have... and not guaranteed as the MMs don't have as much funds.


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