25 April 2017
Visit EBAday.com

BlackRock to shut down analyst survey programme following Attorney General probe

10 January 2014  |  4002 views  |  0 Online Buy and sell button

BlackRock, the world's largest asset manager, has agreed to end its analyst survey programme after a probe by the US Attorney General into the early release of market moving sentiment data.

The Attorney General's Office determined that the design, timing, and structure of the surveys allowed BlackRock to obtain information from analysts that could be used to get ahead of, or, as a BlackRock document put it, "front-run" future analyst revisions.

A key component of the settlement with BlackRock is its continued cooperation in the Attorney General's broader investigation into the early release of analyst opinions to investors who use the data in complex trading programs.

It follows a separate reform secured by the Attorney General in which Thomson Reuters agreed to stop selling an early release of consumer survey data to high-frequency traders.

"Our agreement with BlackRock to end its global analyst survey programme and cooperate with my office's Wall Street-wide investigation into the early release of analyst sentiment is a major step forward in ensuring fairness to our financial markets and ensuring a level playing field for all investors," says Attorney General Schneiderman. "The concept that there should be one set of rules for everyone is critical to protecting the integrity of our markets, which is why my office will continue to take action against those who provide unfair advantages to elite traders at the expense of the rest of us."

The investigation was based in part on information provided by confidential whistleblowers who came forward to express grave concerns about the practice.

BlackRock agreed to pay $400,000 for the cost of the investigation, but no fine or penalty, and to cooperate in any investigation related to the probe.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

New York attorney general goes after HFT cheats

New York attorney general goes after HFT cheats

25 September 2013  |  6972 views  |  1 comments | 2 tweets | 1 linkedin
Thomson Reuters suspends early peeks at consumer data for HFT clients

Thomson Reuters suspends early peeks at consumer data for HFT clients

09 July 2013  |  5393 views  |  0 comments | 3 tweets | 1 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit dh.comFind out more

Top topics

Most viewed Most shared
hands typing furiouslyDoes the Buck Stop with GameStop?
14669 views 0 | 3 tweets | 14 linkedin
BBVA runs live funds transfers over RippleBBVA runs live funds transfers over Ripple
11498 views comments | 31 tweets | 20 linkedin
Alipay and WeChat near $3 trillion payments milestoneAlipay and WeChat near $3 trillion payment...
9693 views comments | 35 tweets | 38 linkedin
hands typing furiouslyBitcoin ETF Bites the Dust, Needs More Sec...
9271 views 0 | 7 tweets | 7 linkedin
Western Union and MoneyGram unveil Facebook Messenger bots; Mastercard and Amex pile inWestern Union and MoneyGram unveil Faceboo...
8990 views comments | 17 tweets | 17 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job