This would suggest that the hedge team are only layers.  This ignores the fact that the hedge team are also engaged in backing, and therefore directly competing with Betfair’s customers for the best-price in the market.

"The bets placed by Betfair’s Maltese entity aren’t initiated by the team based on any view of the events in question; they’re placed in response to orders placed by customers on multiples."

The bets are placed so that Betfair can hedge its risk when it needs to.  When it does not need to, it simply banks the profits from the multiples.

"They place the bets using the same software as everyone else using the site and respecting any in-play delays."

That is really a matter for a regulator and not Betfair to determine.

"The multiples product is run under Betfair’s Maltese bookmaking license and is regulated by the LGA there. Therefore the team has to be based in Malta. "

Unless the multiples operation is making significant profits, there is no actual reason why it should be based in Malta.  Unless, that is, Betfair is keen to keep it at arms length from the UK’s gambling commission.   A 2003 paper published by the UK’s Department of Culture and Media stated that betting exchanges should be subjected to specific duties: They would not be able to initiate bets in any way on the exchange - in that they merely construct a controlled market; and are not a party to the bet. They may not permit their customers to identify themselves to each other, either through personal contact or otherwise.
- They must display and disseminate their betting rules.
- They must consent to having their play and payment systems checked by someone authorised by the Gambling Commission.

Also betfair multiples only operate in a limited number of markets, e.g. tennis, football, so it is wrong to compare it to the number bets placed on the whole exchange as whole.

So the big question is, of all the bets placed on these markets that are traded by betfair malta, what percentage of them are matched by betfair ? I bet it is a lot higher than he misleading 0.008% given above.

betfair multiples has been running for just over a year, that is still a significant 100 large trade placed into the exchange a day on average. I hazard a guess at them being large as otherwise it would be pointless placing them.

Can Tony Clare confirm or deny that betfair has recruited experienced odds compilers from the betting industry and traders from their own customer base with the purpose of boosting the GP on the bets taken by betfair Malta ?