Matchbet Limited is in the process of launching a new internet betting exchange using revolutionary software (patented in 35 countries) which has been developed over the last six years for the banking sector by Matchbet's parent company, Oxford Virtual Markets Ltd, at a cost of c£2.5m. It has now been adapted for the betting industry.
Oxford Virtual Markets ('OVM') Ltd was founded in 1990 with the aim of developing next-generation trading exchange systems for the financial markets. With a wealth of world-class talent as well as leading figures from the City, the OVM research team exploited state-of-the-art mathematical and scientific techniques to develop sophisticated forecasting tools. These tools were first used to provide a commercial service to a US-based fund management firm in the early nineties. More recently, the expertise acquired in the field of short term forecasting has been put to use in designing a VWAP execution module that is being used to provide the comprehensive execution service which is the basis of this plan.
It is through the discovery of the discrepancy between indicative pricing data and actual prices, and the unsatisfactory nature of existing electronic transaction tools that the company began a major research and development effort in the field of automated transaction systems and subsidiary Advanced Transaction Systems (ATS) was founded in 1996 to lead this initiative in respect of the financial markets.
The parent company OVM invented, patented (in over 35 countries around the world) and built a new type of exchange platform, which is currently being deployed by ATS in a number of client sites in Europe and North America. ATS is a private limited company registered in the UK.
Matchbet Limited is the betting subsidiary of Oxford Virtual Markets Ltd (OVM). OVM owns all intellectual property rights in patented, revolutionary, transaction technology, capable of handling high volume complex matching trades in financial instruments and stock exchanges throughout the world. Matchbet has adapted this technology to create unique and potentially highly valuable software for the internet betting industry and intends to exploit this by offering a 'white-label' service to existing bookmakers to create a substantial international business. This technology has been patented in most of the leading world economies. We refer to the basic design, adapted to the world of betting, as Matchbet, which is the domain name registered to promote the new business.
Matchbet has been established to exploit this technology in the online betting sector, by commercialising the technology into a new type of betting exchange. The extension of trade matching to a general class of bets required a profound extension of the underlying models and techniques, since bets are by definition 'nonlinear' functions, i.e. functions which jump from one level to another, whereas conventional financial instruments tend to behave continuously.
