Five months after its float on the Nordic NASDAQ, Team SBC catches up Spiffx CEO Tobias Fagerlund as the ambitious risk/arbitrage betting platform looks for European expansion and to bring new trading mechanisms to the sports betting market.
Fagerlund details to SBC readers, how Spiffx’s unique platform has been developed for the professional market, as the company seeks to become a key tool for both sophisticated sports traders and betting operators.
SBC: It has been 5 months since you listed on the Nordic OMX NASDAQ, how are Spiffx operations progressing and meeting their new demands?
Tobias Fagerlund (TF): Our team is focussing on increasing Spiffx’s product offer in terms of new features for more efficient betting and transaction handling. We have added intelligent order types and features which make it easier for players to get their orders matched on our platform.
We have also increased the number of betting objects in terms of new European soccer leagues, and added further new markets, such as half time/full time, over/under etc.
SBC: Spiffx has chosen to target professional traders who will likely be more demanding on your operations and services. How has Spiffx created a more dynamic and sophisticated betting market for these consumers?
TF: Spiffx offers two different products: the SpiffIndex and the Darkpool.
SpiffIndex is a unique product that helps traders achieve leverage their betting by adding extra trading mechanisms. This is where professional traders can maximise profit using a wide range of instruments to speculate in odds movements and to price hedges.
On the other hand the Darkpool works like a traditional betting exchange, offering players the typical back and lay selections. However, in contrast to most betting exchanges, the Darkpool has a very attractive price model – 0,10 % on matched amount – and charges no commission at all.
For both products we offer intelligent order types used in the financial sector to match transactions in an effective way. We have also aligned ourselves with partners in order to guarantee players good liquidity. We strive continuously to improve the network and tools for professional traders and marketmakers.
SBC: As a betting company, you have taken on-board learnings and trading principals from financial markets, can you give more insight into developing these principals for sports betting trading?
TF: We plan to enrich the betting industry with a number of features typically used in the financial industry. As an example, one specific feature enables customers to share the spread between themselves. It is called ‘Mid-Price Acceptance’; a terminology used in the financial market.
We have also introduced the ‘Fill or Kill’ and ‘Fill and Kill’ features which can also be used to get a good result in matching transactions. Basically, the ‘Fill and Kill’ allows players to match the amount of their order that is available and cancel the rest, whilst the ‘Fill or Kill’ allows them to match their order if it can be matched, otherwise it will be cancelled.
Another interesting feature is the ‘Floating Order’ which allows the system to automatically move the player’s order when the index changes. Such features allow more flexibility and assist traders with a more intelligent and automated way of betting.
SBC: The Spiffx’s Darkpool and index verticals, can be utilised by sports betting operator to hedge and manager risks. Why have you chosen this approach and what benefits do the services bring to the sports betting market operations?
TF: The founders of Spiffx have extensive knowledge in automated trading in odds and have noticed that the gaming industry lacked instruments for effective trading. That is how the idea to create Spiffx was born. Spiffx believes that odds will be traded on a large market in the future and that sportbooks will use the market for pricing and strategies rather than using their own books for hedging.
The sport betting market is changing and and will eventually become more broker-oriented and that is the added benefit that Spiffx is giving the market.
SBC: As a diverse and flexible product which can be utilised by Customers and operators, where do you see Spiffx sitting in sports betting’s product arc?
TF: The overall value of the Spiffx platform is that is can be used by both players and gaming operators.
Spiffx can be moulded in a way to either act as pure fun gaming product or as a hedging tool to manage price and risk strategies, or of course a mixture of both. We strive to operate an efficient market with quality products and instruments for both high-end users and sportsbooks, but also developing white-label consumer-based products through our advanced technology.
SBC: Finally as we enter a new European football season, what are your company’s key goals and ambitions?
TF: Our aim is to increase the product offer with new leagues, sports and markets and also to increase the number of partners that will guarantee liquidity in the marketplace. Spiffx will aslo be launching new consumer-friendly products based on the SpiffIndex market that will increase our range of products. We aim at being ahead of the industry, to offer a more intelligent way of betting, and to be paving the way to the future of sports betting.
Tobias Fagerlund – CEO – Spiffx