The football stock exchange offering Football Index has teamed up with financial trading systems integrator Gold-I to create a new form of tradeable market that will be made available via existing financial treading systems.
Football Index has already been up-and-running with its football stock exchange since earlier this year and raised £800,000 via a Seedrs campaign in the spring.
Now the company says it is launching the new platform which will run via Gold-I on the industry standard retail forex MetaTrader platform enabling football traders to buy and sell future contracts based on the value of football players.
The hope is that the product will be launched in the second quarter of next year. It is being developed in response to what the two companies see as the growing synergies between retail foreign exchange brokers and the footballing community, as evidenced by the various football sponsorship deals with Premier League clubs signed in the past few years.
Adam Cole, chief executive and founder of Football Index, said the idea behind the product was to entice football punters into trading who might be scared off by the terminology of financial trading.
“Financial markets can be scary if you’re just getting started,” he said. “Many people don’t believe they have the resources and knowledge to trade on the financial markets but when it comes to football it’s a different story, everyone thinks they have the answer.
Speaking to GamCrowd earlier this year, an early-stage investor in Football Index, said the current offering allows players to buy into a player, and his fortunes, rather than an event. “A player’s value within the index can be affected by a number of things including his performance on the pitch but also things off the pitch,” he said. “Rumours about transfers, anticipation for the weekend fixtures. There are a lot of off-field factors that go into the value, and then supply and demand as well.”
The chief executive of Gold-I, Tom Higgins, said the new offering would allow his company’s broker clients to broaden their offerings and potentially generate new revenue streams.
“By creating a football-based futures contract, we hope to help brokers to attract a new audience to trading – people who may eventually use their experience gained through trading via Football Index on MetaTrader to trade currencies and other financial instruments,” he said.
“We also believe there will be many existing FX traders who will welcome the opportunity to try out this unique football-based form of trading.”