FI Statement - Urgent Market Update - 14/9/20



  • https://trade.footballindex.co.uk/market-update-140920/

    Dear Traders,

    While we usually refrain from providing market commentary, we feel it is important to recognise that the market experienced abnormal trading patterns late last night and through to early this morning. Our risk team has been monitoring the situation very closely.

    The market is now stable. In the unlikely event that there is further high level of volatility, we won’t hesitate to temporarily suspend the market if necessary. We understand the concern this has caused. We are determining the factors that have contributed to this volatility and will communicate our findings once this has been completed.

    A one-off correction as a result of freeing Offers from the restraint of the Sell Queue is not entirely unexpected, but we are still assessing exactly what took place.

    We would urge Traders to take care in case of over adjusting trading strategies, and to remember that the intrinsic value of the 3 year bet driven by the 20/21 Dividend Chart remains unchanged - exactly the same as it was 48 hours ago.

    The Football Index Operations team



  • @Rocky-Raccoon said in Urgent Market Update - 14/9/20:

    In the unlikely event that there is further high level of volatility

    I’m less confident about that!



  • "We are determining the factors that have contributed to this volatility and will communicate our findings once this has been completed."

    If that is remotely true, they are idiots beyond belief. There's no way they didn't see this coming. They're either complete morons or they knew this would happen and they're lying.... given that they made a killing yesterday, I know which way I'm leaning.

    "intrinsic value of the 3 year bet driven by the 20/21 Dividend Chart remains unchanged - exactly the same as it was 48 hours ago."

    BULLSHIT ALERT

    By what formula? Adam Cole's? Their communications are in full blown propaganda mode at this point and should be taken with a pinch of salt.



  • I didn't check my port last night but came on today and audibly said WTF? Are these prices considered stable? I'm in the red all over the shop! I've decided to not look at it and will come back later in the week haha



  • “We usually refrain from commenting, but in this case we shit the bed and did nothing while many of you lost a lot of money. And we’re now cacking it as vast numbers of traders have sold up and left the platform.”



  • I'm a big fan of FI but not sure this is great communication and why does the market need to close, isn't an order book system all about volatile situations!



  • They could've released that statement at 8am this morning - don't see what was holding it back?



  • @Chris-J complacency.



  • This statement just strengthens my opinion that they don't understand their own product. They seem to be the only ones in the dark as to what's caused this haha

    Oh and for the record, the market ISN'T now stable!



  • @stumac85 compared to last night these prices are lovely haha!



  • @Shippers
    My reading of this comms is as follows.

    They are looking at the offer traffic of accounts - this way they will see who moves the prices down - they may well be able to track twitter and facebook accounts this way.

    It won't be a quick investigation as they will need to be crystal clear if they decide to suspend any accounts over it.

    I would class myself as one that shit himself and was sat on the bog at 4 am this morning feeling sick and trying to explain to the mrs I can't have my outdoor bar etc, but she can have her sofa (maybe).

    FI would have made a lot of money from the sales last night (and buys) so they have to be squeeky clean that they are not seen as profiteering from any of this, as I am in no doubt the gambling commission will have countless complaints today and they will need to explain their actions on a) why they didn't suspend the platform and b) what they will be doing moving forward to protect the market place.

    If after investigations nothing was untoward, we just have to get used to Sunday nights being 'shit your pants nights' and crack on.

    My guess is some unknown accounts will be suspended, a clear message about future suspension of the platform delivered and a deposit bonus as a 'have some money back' to keep the commission of their backs.



  • @Shippers Stupid comment! Of course a platform, that was fairly stable turning to this s$%t! is going to cause people to panic and sell.



  • @Shippers What's happened here is widespread panic. I can see cause to put on the handbrake and take stock. Looks to be awful lot of misunderstanding of how Orderbooks work.



  • My worry with this statement is this "We are determining the factors that have contributed to this volatility and will communicate our findings once this has been completed."

    It indicates that the risk team did not see this coming, which ultimately means they failed in their job. It hardly drives confidence in those in charge



  • @Chris-J they now have a comms person so any response will be considered and not knee jerk; happier for a slight delay than the previous AC bollocks.



  • Surely the threat of closing the market in the near future is encouraging even more panic selling?



  • "Sorry lads, your money has all gone, it'll probably happen again. Anyone fancy a QPR shirt?"



  • If FI want to become a 'stock market', then they need to be clear on the thresholds for suspending the market.

    Suspending trading is critical in times of chaos/panic, it happened with the S&P after a 10%+ drop amidst covid.

    With inexperienced traders and times of transition, market suspension should have been on their agenda.



  • @Millerman said in FI Statement - Urgent Market Update - 14/9/20:

    @Shippers
    My reading of this comms is as follows.

    They are looking at the offer traffic of accounts - this way they will see who moves the prices down - they may well be able to track twitter and facebook accounts this way.

    It won't be a quick investigation as they will need to be crystal clear if they decide to suspend any accounts over it.

    I would class myself as one that shit himself and was sat on the bog at 4 am this morning feeling sick and trying to explain to the mrs I can't have my outdoor bar etc, but she can have her sofa (maybe).

    FI would have made a lot of money from the sales last night (and buys) so they have to be squeeky clean that they are not seen as profiteering from any of this, as I am in no doubt the gambling commission will have countless complaints today and they will need to explain their actions on a) why they didn't suspend the platform and b) what they will be doing moving forward to protect the market place.

    If after investigations nothing was untoward, we just have to get used to Sunday nights being 'shit your pants nights' and crack on.

    My guess is some unknown accounts will be suspended, a clear message about future suspension of the platform delivered and a deposit bonus as a 'have some money back' to keep the commission of their backs.

    I don't think every sunday would be like this if there wasn't any manipulation (which I'm not convinced there was) because people would get used to the way an order book system works.



  • @Dr-Jan-Itor said in FI Statement - Urgent Market Update - 14/9/20:

    My worry with this statement is this "We are determining the factors that have contributed to this volatility and will communicate our findings once this has been completed."

    It indicates that the risk team did not see this coming, which ultimately means they failed in their job. It hardly drives confidence in those in charge

    Could be read as they are determining whether it was organic or inorganic factors that caused/drove the volatility, however I would agree, seems like they weren't prepared for this.


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