Wednesday 10 July 2013

the dark side of Thomson Reuters

Surely many of you do not know that Thomson Reuters for a long time, some economic data make available a few minutes earlier before the official publication for the best their customers (for example: investment banks, hedge funds, etc.).

What made ​​that these institutions have earned much money in the currency markets, equity practically with no risk.

Of course, smaller individual investors were only purveyors cash.

we read in today's Communication:

"Company Thomson Reuters temporarily cease prior convey important economic data of their clients. A request to the New York Attorney General Eric Schneiderman, who leads the investigation in this case. Provider of market data has the exclusive right to sell index of U.S. consumer confidence in the economy, calculated by the University of Michigan. Some customers - mainly companies specializing in high-frequency trading - get the most recent readings of a few seconds before the other customers, and five minutes before their official publication by Reuters. The stock market should be equal with playing field for all investors, and early disclosure affecting the data market undermines this principle - Schneiderman says. 
Thomson Reuters argues that non-data - like exclusive information can sell to customers on any basis. In particular, the multi-stage publish relevant indicator apparently did not bother them :) Proceder contested in mid-2012 an employee of Mark Rosenblum, who concluded that it is inconsistent with the provisions prohibiting insider trading. He says that in August was therefore dismissed from his job.


to your reflections, comments are welcome always :) I would like to know your opinion.


best regards,
oscarjp



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