06 December 2016
Visit aciworldwide.com

Wall Street firms suspend participation in analyst surveys

26 February 2014  |  3761 views  |  0 New York Stock Exchange

Eighteen of Wall Street's top banks have agreed to suspend their participation in surveys of analyst sentiment amid concerns that the practice gives high-speed traders an unfair advantage over ordinary investors.

Attorney General Eric Schneiderman has announced interim agreements with prominent firms, including JPMorgan, Citigroup and Goldman Sachs, to stop their practice of cooperating with analyst surveys "administered by certain elite, technologically sophisticated clients", while he conducts an industry wide investigation into early access to analyst sentiment.

The firms have agreed to suspend participation in any survey worldwide that relates to companies listed on US exchanges.

"At my request, these firms have agreed to stop a practice that can offer an advantage to powerful clients at the expense of others," says Attorney General Schneiderman. "Our markets will only be fair and healthy if everyone plays by the same rules, which is why we will continue to take action against those who provide unfair advantages to elite traders at the expense of the rest of us."

The move follows last month's groundbreaking agreement with BlackRock to shutter its analyst survey division and pay a $400,000 bill to cover the costs of the investigation.

The probe into BlackRock's survey revealed that a number of questions were worded to capture analysts' views regarding management, competitive position, earnings, and other aspects of covered companies. 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 front-run future analyst revisions.

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

BlackRock to shut down analyst survey programme following Attorney General probe

BlackRock to shut down analyst survey programme following Attorney General probe

10 January 2014  |  3865 views  |  0 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  |  5291 views  |  0 comments | 3 tweets | 1 linkedin

Related blogs

Create a blog about this story (membership required)
Find out moreVisit aciworldwide.comFind out more

Who is commenting?

A Finextra member Finextra Member Commented on: Guesswork alone can cr...
A Finextra member Finextra Member Commented on: Guesswork alone can cr...
A Finextra member Finextra Member Commented on: Guesswork alone can cr...

Top topics

Most viewed Most shared
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
6241 views comments | 23 tweets | 15 linkedin
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
6169 views comments | 14 tweets | 23 linkedin
Bank CEOs fret about ROI as startups drive IT arms raceBank CEOs fret about ROI as startups drive...
6124 views comments | 16 tweets | 21 linkedin
Amazon signs up tech firms to financial services cloud programmeAmazon signs up tech firms to financial se...
5949 views comments | 14 tweets | 15 linkedin
R3 and Calypso to develop blockchain trade confirmation systemR3 and Calypso to develop blockchain trade...
5794 views comments | 13 tweets | 13 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job