FACINATING !
My suspicions in respect of piloted pricing seem to be a reality, especially in view of a lack of clarity from Betfair.
For others convenience the article is copied below. Many thanks for digging this up.
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Thursday, 17 April 2008
Betfair Betting Teams/Computer Programs/Robots/Fair Betting
It would appear that Betfair have employees based in Malta that are betting against clients on the exchange and that they have computer programs/robots operating in a number of areas.
The primary concerns for all clients would be to know in which markets these Betfair teams are operating and whether or not they have any kind of advantage over clients.
Betfair claim that these employees assume no risk and that they are purely their to manage any risk Betfair may have with regard to multiple bets offered (would it be fair for me to assume that f they take no risk they are taking better than fair prices and/or arbitrages?)
The problem is, however, what exactly and how are these teams operating?
Do they have direct access to the Betfair Servers? Are they in possession of information that clients may not have? Do they have the same delays when placing bets as clients?
Do their computer programs/robots operate from separate terminals or are they based on Betfairs own servers? There are a multitude of questions that desperately need answers.
The main problem with the majority of this is that it is extremely difficult to see how there cannot be a conflict of interests with Betfair themselves operating in a market they are responsible for offering to clients with whom they are directly competing. There is also a further problem in that they do not identify these markets and products where they themselves are operating and it is unclear as to whether or not they have any advantage over ordinary clients.
There is also the problem of not treating all clients equally or some being at a disadvantage to others.
Below are a list of questions sent to Betfair and regulatory bodies still awaiting a reply:
Dear Sirs,
I have a number of concerns relating to how you operate your business and would appreciate it if you could provide answers to the following questions.
PLEASE NOTE: ALL THE FOLLOWING QUESTIONS RELATE TO BETFAIRS OPERATIONS BOTH NOW AND AT ANY TIME IN THE PAST.
Betfair Questions
Betfair Interaction and Involvement with Their Own Products and Markets Offered:
In which markets/products/games have Betfair had an interest or direct involvement operation wise where they are in direct competition with clients?
Do Betfair have or have they ever had any advantage over other clients? eg do they get priority on bet queues or can they jump in front of other bets or offers do they pay less commission etc etc?
Where are these persons or computer bots/programs physically located and from where and what do they operate? eg from Malta/UK on Betfairs servers or separate computer terminals, do they have direct access to Betfair Servers etc etc?
Do Betfair employees/representatives/robots play any of the In Running Markets offered either now or at any other time in the past?
You have claimed or implied on your website that your Betting teams and/or robots have been sanctioned by various regulatory bodies. Would you kindly state when and by whom and in which jurisdictions these actions have been sanctioned and tested?
Does any regulatory body analyze and monitor all such activity by Betfair employees/representatives/computer programs in any/all markets that they operate? eg do they follow the complete audit trail of any/all bets placed by Betfair on any of their markets and/or games?
Why are all areas/markets where Betfair employees/representatives/computer programs(bots) not clearly identified as such for the benefit of transparency and so clients can know when they are directly competing with Betfair?
Betfair claim they have had their robots sanctioned and passed and allowed to play in their own markets using their own personnel and computer programs. Which jurisdiction(s)/who have sanctioned them? What are they permitted to do and not do? What was sanctioned specifically and which markets can and cannot have computer bots and/or Betfair employees operating in them?
Do Betfair have or have they had at any time in the past any advantages as far as access to data or placing of bets compared to normal clients in any shape or form? (eg speed of execution level of commission paid being able to see incoming bet requests lays and offers etc etc ?)
Do Betfair have or have they had at any time in the past any preferred clients? eg ones who have accounts that can queue jump bets and offers or who get preferential treatment of any kind when compared to regular clients?
Do Betfair have or have they had at any time in the past any clients who pay 0% commission or a flat monthly fee instead of per bet commission? Will they have clients with this preferred commission structure in the future? Do Betfair themselves have a preferred commission structure advantage for themselves whenever they operate in any markets or products offered?
Do Betfair or have they at any time in the past extended credit to any clients?
Are all clients treated equally and have the same level and speed of access to their servers for placing and taking bets or do Betfair offer some outlets (commercial or private) preferential access to their servers?
Do Betfair Robots behave/act and have they behaved/acted at any time in the past like normal people/clients? Will they act like ordinary clients and under the same constraints as ordinary clients in the future?
Has the Betfair hardware architecture been audited to test and check that Betfair obtains no technical advantage over ordinary clients? Furthermore if they do gain advantage then this should clearly be posted and presented prominently in all markets in which such persons or hardware operate.
Do Betfair have advantage in exchange games i.e are their bets placed first in queue? Are there any warnings to that effect on display when they are involved in any activity in any areas where they compete with clients?
Why was no notification been given to users about bet matching especially considering any mistake would automatically be punished and when Betfair would profit from that mistake?
Why aren’t all markets in which Betfair employees/teams robots operate identified as such?
Are Betfair employees allowed or have they been allowed at any time in the past to bet themselves on the exchange? Are Betfair employee close friends and relatives allowed to bet or have they at any time in the past been permitted to bet on the exchange or play in any other markets or products offered?
Are Betfair employees monitored for “Insider Dealing?”
Do Betfair permit or have they at any time permitted anyone or have they themselves been permitted to see or access incoming bet offers or lays in order to preempt them and get a speed of execution advantage or queue jump those bets and/or offers?
Your soonest response would be appreciated.
