Author Topic: Fractional API -- Bidding Policy Change  (Read 9524 times)

thezfunk

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Fractional API -- Bidding Policy Change
« on: October 02, 2014, 02:12:44 PM »
Anyone else see this?  What prompted this?  Email I just received.

This notice is to inform you of a change to our API bidding policy.  Effective today, API users will be able to buy up to 50% of a loan in the first 24 hours, and buy up to 100% after 24 hours.

Please email investorteam@prosper.com with any questions.

Thank you,

Prosper Investor Team

Notes offered by Prospectus

Randawl

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Re: Fractional API -- Bidding Policy Change
« Reply #1 on: October 02, 2014, 02:29:02 PM »
Interesting change - certainly good news for Prosper investors not currently using the API.  I wonder if LC will make similar changes, other than the ~1 minute delay in updating the csv.

Prescott

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Re: Fractional API -- Bidding Policy Change
« Reply #2 on: October 02, 2014, 02:54:23 PM »
Very few fractional investors want to take 50% of any loans, let alone 100%. The guys that are doing it are likely all the same guys in the whole loan pools.

I read this as they don't have enough investors in the fractional pool - they want to allow their institutional clients to clean up loans. The only way you could argue this is better for retail people is if because of this allowed "clean up" they put more loans in the fractional pool. That's how I'd spin it - maybe marketing will pick up on it - but of course they'd have to actually increase the pool or we'd all see ratios are staying the same. Otherwise it's neutral for retail at best.

I thought I read somewhere that they are limiting institutional investors in the fractional pool to 10%, I wonder if this change moves it back to 50% (or if they did that previously. That just lets 2-3 players pick off their loans giving everyone else adverse selection if their API tool is not fast enough.

Institutional players in all three pools - anyone got an idea how much is still "peer"?

I emailed for clarification - we'll see if they get back to me.

Rob L

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Re: Fractional API -- Bidding Policy Change
« Reply #3 on: October 02, 2014, 02:56:29 PM »
Last February:
http://www.lendacademy.com/prosper-making-some-needed-changes-for-retail-investors/

Does this mean that institutional investors may now purchase 50% rather than 10%?
When the change to 10% from 50% was made the Prosper CEO said the 50% limit very clearly wasn't working.
All the retail investors were leaving. Am I remembering apples and oranges here?

Prescott

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Randawl

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Re: Fractional API -- Bidding Policy Change
« Reply #5 on: October 02, 2014, 03:37:21 PM »
Ohhh. . . I interpreted it as API users as a whole will be able to purchase 50% within the first 24 hours, leaving the rest to non-API users in the first 24 hours.  I suspect I was incorrect and that it is actually referring to each API user can invest up to 50% of a loan in the first 24 hours.

thezfunk

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Re: Fractional API -- Bidding Policy Change
« Reply #6 on: October 02, 2014, 04:15:52 PM »
I could see either interpretations being correct.  I will await their response.

Prescott

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Re: Fractional API -- Bidding Policy Change
« Reply #7 on: October 02, 2014, 09:13:45 PM »
Per user, 10%, then 100% 24 hours later.

Quote
Dear API user Ė earlier today you received an email from Prosper stating the following:
 
"This notice is to inform you of a change to our API bidding policy.  Effective today, API users will be able to buy up to 50% of a loan in the first 24 hours, and buy up to 100% after 24 hours.Ē
 
The email was inaccurate. We apologize for the miscommunication.  The changes that we made are the following:
for the first 24 hours after a listing is posted, the maximum percentage of the loan that an API user can bid on will be capped at 10%
once a listing is 24 hours old, the bidding cap will be lifted and API bidders can then bid on up to 100% of the loan
 
Why did we do this?
The 10% bid limit will help ensure that Prosperís retail investors have maximum access to all listings.  We believe 24 hours is adequate time for retail investors to review and bid on a listing. If a listing still hasnít been fully funded at that point, we will remove all bidding limits to ensure optimal funding.  In addition, the projected increase in throughput through the fractional pool will lead to a greater volume and variety of loans available to retail investors on a daily basis and over time.
 
This policy benefits both borrowers and investors and is in line with Prosperís objective of increasing retail participation on the platform and being the premier marketplace for consumer credit.
 
 
Prosper Investor Services Team

Rob L

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Re: Fractional API -- Bidding Policy Change
« Reply #8 on: October 02, 2014, 09:26:56 PM »
Thanks for following up and getting the clarification.

Prescott

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Re: Fractional API -- Bidding Policy Change
« Reply #9 on: October 02, 2014, 09:35:12 PM »
They sent that email to everyone, I just posted it ;)

Prescott

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Re: Fractional API -- Bidding Policy Change
« Reply #10 on: October 02, 2014, 09:36:13 PM »
Also, they totally read my comment and took my spin.

Fred93

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Re: Fractional API -- Bidding Policy Change
« Reply #11 on: October 03, 2014, 12:53:42 AM »
Quote
for the first 24 hours after a listing is posted, the maximum percentage of the loan that an API user can bid on will be capped at 10%

Whoa!  My bids are often over 10% of a loan.  There are so few loans available on Prosper's fractional market, that it would take forever to invest.  Also, if I'm forced to hold small notes, I will end up with a ridiculous number of them.

So to handle this restriction, I will need all new bidding logic.  Ideally I think I would make a small bid when the loans first appear, and then come back later, and try to place an additional bid on loans I'm already in, to try to get my desired size.

No existing software is set up to do anything like that.  I'm using nickelsteamroller to place my bids on Prosper now.  Not even sure that they're still doing development.

As it is, NSR never looks at anything but "new" loans. 

Other possibility is to just give up on Prosper.  They're not posting enough loans to the fractional market.  We can see the numbers, and they're very small.  Sort of astonishing that they have decided to impose rules on what happens after the loans are posted, because the fundamental problem is that they don't post enough.  They're giving almost all of their loans to the whole loan marketplace.

rocco.g

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Re: Fractional API -- Bidding Policy Change
« Reply #12 on: October 03, 2014, 02:34:32 AM »
Whoa!  My bids are often over 10% of a loan.  There are so few loans available on Prosper's fractional market, that it would take forever to invest.  Also, if I'm forced to hold small notes, I will end up with a ridiculous number of them.

So to handle this restriction, I will need all new bidding logic.  Ideally I think I would make a small bid when the loans first appear, and then come back later, and try to place an additional bid on loans I'm already in, to try to get my desired size.

No existing software is set up to do anything like that.  I'm using nickelsteamroller to place my bids on Prosper now.  Not even sure that they're still doing development.

As it is, NSR never looks at anything but "new" loans. 

Other possibility is to just give up on Prosper.  They're not posting enough loans to the fractional market.  We can see the numbers, and they're very small.  Sort of astonishing that they have decided to impose rules on what happens after the loans are posted, because the fundamental problem is that they don't post enough.  They're giving almost all of their loans to the whole loan marketplace.

A lot of features on NSR are not currently open to the public right now.  Automated investing isn't even publicly available yet, although we turn it on for a lot of people who ask.  But there are even more features we can turn on beyond just basic auto investing.  We have controls for modifying investment strategy based on available cash and/or cumulative bid limits over time.  There is support for custom formulas from a WYSIWYG editor and more complex custom java models using our SDK as well as integration with some 3rd party models.  We even have support for more then just  2 platforms.  And last but not least we also have the capability for doing multiple bids on Prosper up to a maximum based on available cash and Prosper's rules doing pretty much exactly what you described (i.e. 10% initial bid if its less then your max, then additional bids after the 24 hour marker to get to your max). 

We don't advertise to well at this point (something we need to work on) and a lot of what we are doing probably wouldn't even be advertised towards the retail community.  If some of these features sound like they would be useful send me a message and we can discuss getting them turned on for your account.

Prescott

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Re: Fractional API -- Bidding Policy Change
« Reply #13 on: October 03, 2014, 04:28:55 AM »
I've used NSR since they launched to manage my investments - works very well.

Prescott

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Re: Fractional API -- Bidding Policy Change
« Reply #14 on: October 03, 2014, 04:31:42 AM »
Other possibility is to just give up on Prosper.  They're not posting enough loans to the fractional market.  We can see the numbers, and they're very small.  Sort of astonishing that they have decided to impose rules on what happens after the loans are posted, because the fundamental problem is that they don't post enough.  They're giving almost all of their loans to the whole loan marketplace.

Well per their second email, they'll be putting more in the fractional market - so lets give them a week to or two to see how the loans come out Although, immediate changes to their terms I expect immediate changes to their distribution of loans.