Betfair’s LMAX loses £13.2m in first year
Betfair’s majority owned financial trading product LMAX recorded pre-tax losses of £13.2m for the year ended 30 April, Betfair’s annual report has shown. Full story: –
https://www.egrmagazine.com/news/
I think LMAX is going to continue to be a burden for Betfair. There are already very good solutions in place in this market and despite the suggestion it’s a new way, most new users have found that the markets are heavily seeded and the fill rates poor. It’s got a long way to go to get to viability. The morphing of Betfair’s core sports exchange model away from its origins isn’t helping either I suspect. Some of the big financial traders I have spoken to have expressed concern with this and are sticking to their well established providers in financials where they feel they know and understand their relationship with their provider.
From a markets view point I am aware that activity is always higher in buoyant markets as people are net long in general. When the market is in turmoil, as recently, people become overtly risk averse and less enthusiastic for this sort of medium. Overall not an ideal environment for a new venture.
Category: Betfair
