The role of Market Makers (?)



  • The Market Makers, what would be their role and what difference, if any at all, would they make in the current market?

    From reading the various posts around the time they were first mentioned, it appears that the only certain information is that they will provide more liquidity to the market and somehow back a wide range of IS prices to make sure that players can actually be sold (albeit at a considerable loss in value).

    Would this really be all? And if so would it drive any change whatsoever in current market sentiment?

    As my personal wishful thinking I would expect them to play the role of market stabiliser rather than makers.

    I will try to exemplify - a MM with a £5m to invest strikes a deal with FI to pour that on the market for a 'guaranteed' return of say 20% per year (a more than decent return in the stock market world) based on past PB performances (the only parameter which at the moment seems to have consistency around here).

    As such based on PB performances of last year they will start rake all the shares available on the market until the player reach that ratio (i.e. if ha player has generated last season £1 in PB they will buy anything until it reaches £5 in value).

    Now imagine they must keep those shares for a season and only then re-assess.

    Imagine that across the market, we will have a solid baseline on a lot of players - sure it will be more difficult to have the 'stellar' profits someone is claiming at the moment but it will bring more liquidity, make more difficult to undercut (as it will need to beat the combined pressure of all market makers) and will also bring back a degree of capital appreciation (i.e. if you are able to predict earlier a new PB generator you will have capital appreciation the moment in which the yields compel the MM to buy it).

    Now why would they get into this at all, because differently than others FI will tell them in advance about upcoming changes so that they could always re-shape portfolio and have their margin guaranteed.

    Too complex? Unrealistic? Oversimplified? Do you expect anything remotely similar?

    I am just trying to understand how they could make a positive impact - as surely simply having a lot of liquidity still undercutting the market seeking better profit ( (i.e. being not much more than a whale rather than a maker) cannot possibly bring us out of the current swamp...



  • I think market makers jump in and out quickly and make very small margins but with lots of money at stake. They won't hold there money in players and get a 20% return each year, they will get a concession like not having to pay commission when they sell. It's to keep the market liquid but I fear this will be a very hard sell at the minute hence why nothing has happened.



  • I doubt we will see them qny time soon ,people would sell up and run qnd FI don't want that they are trying to keep us on here ... that is why IS disappeared when it did to protect their wallet



  • @R9inter understandable given all that happened, but surely if one does not need the money soon in the 'real world' why jumping ship if the 'fix' is actually permanent and brings back the market to a 'healthy' condition? and even if you do so, won't you come back as soon as you realise things have turned?

    I know that is probably what I would do, but keen to understand different angles...



  • Why not just get rid of the buy button and have one price for both buy and sell.

    The price would go up 1p when 900 shares are bought or down 1p when 900 shares are sold

    This would sort out all the declines in portfolio values and stop the race to the bottom as undercutting would just stop and there would be no need for FI to put minimum level costs on players

    I am obviously missing something but seems an easy solution to me



  • @Kozo-Kira how i see it and what ive read in their game rules is we will see almost two seperate forms of market makers, FI themselves will act as a MM for non profitable (in some cases) reasons such as removing shares, offering a bit of liquidty and obviously confidence in the market. The other will be third party market makers which will sign into an agreement, sometimes also through incentive schemes but will be for profitabe reasons offering liquidity and confidence to the market at the same time . I do think FI may have struggled to onboard these sort of providers as not sure as to why there is a delay unless their waiting for the finished article. Time will tell i suppose but its clear as day their isn't enough money in the market at the moment.



  • Because we don't actually know if it will recover or not if that makes sense ,so I sold at a loss reducing my losses so I qm not gambling on FI next move ,but I am taking a logical approach ..
    For example if the market recovers i will jump back in and I wouldn't mind paying higher prices as long as I know that if I want to sell a player I will be able to ...
    But if I was to top up now I would just be doing so without certainty that the platform will recover so I could be increasing my losses ...as right now in the current state is hard even to IS for q big loss

    I hope it makes sense

    I think the smart people are the ones that do it logically based on facts rather than q hope ( I am sure they will probably sort it but it is not guaranteed)



  • @R9inter said in The role of Market Makers (?):

    Because we don't actually know if it will recover or not if that makes sense ,so I sold at a loss reducing my losses so I qm not gambling on FI next move ,but I am taking a logical approach ..
    For example if the market recovers i will jump back in and I wouldn't mind paying higher prices as long as I know that if I want to sell a player I will be able to ...
    But if I was to top up now I would just be doing so without certainty that the platform will recover so I could be increasing my losses ...as right now in the current state is hard even to IS for q big loss

    I hope it makes sense

    I think the smart people are the ones that do it logically based on facts rather than q hope ( I am sure they will probably sort it but it is not guaranteed)

    I don't think you can look at the whole market and say yep it will all recover, impossible as players have sinced changed clubs, not in a PB league now, closer to retirement or other reasons. Alot of players values changed once IS to FI got removed but on the other hand when the div increased alot started to look like huge value. Its a 3 year bet and you can earn great percentages on a gold day from one player which is insane, had 48% of Spinazallo last week (IPDs included) - silver and Bronze days again offer a great percentage but the risk has increased which can't be ignored. Traders will need confidence to trade similair to before and sentiment could change if their is money behind the product.



  • @Shippers yes it would be value in a liquid market but no point earning 50% in divs if you have all your stake locked at the end of it



  • @R9inter said in The role of Market Makers (?):

    @Shippers yes it would be value in a liquid market but no point earning 50% in divs if you have all your stake locked at the end of it

    Of course but that isn't going to be the idea of it, FI haven't created this for it not to be liquid, its there black and white about market makers but i couldn't tell you why they aren't here yet, its frustrating and to the point where people have lost confidence in FI. I believe they will get it right but understand the loss of confidence.



  • @Shippers we will see what happens ...for now I stopped loosing money which is the best thing I could come up with ...while crashing I had some trades that made me 100 percent profit but the losses outweighed the gains so I pulled the plug for now



  • @R9inter said in The role of Market Makers (?):

    @Shippers we will see what happens ...for now I stopped loosing money which is the best thing I could come up with ...while crashing I had some trades that made me 100 percent profit but the losses outweighed the gains so I pulled the plug for now

    Depends on how you look at that, they only became losses once you hit sell. I do understand if you felt the need too for whatever reason though just for your own sanity 🤣.



  • @Shippers that is very true different points of view


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