23 August 2017
Find out more

Thomson Reuters suspends early peeks at consumer data for HFT clients

09 July 2013  |  5505 views  |  0 Thomson Reuters logo web screen shot

Under pressure from the New York attorney general, Thomson Reuters has agreed to suspend its practice of providing high-frequency traders with market-moving consumer survey results a couple of seconds before the information is given to other subscribers.

Thomson Reuters pays more than $1 million a year to exclusively distribute the University of Michigan consumer survey results - which are published once a fortnight - to its terminal subscribers five minutes before the wider market sees them.

However, the data giant has also been giving high-frequency traders willing to pay several thousand dollars a month an extra two second head-start.

The practice is understood to have come to the attention of New York attorney general Eric Schneiderman earlier this year after a former Thomson Reuters staffer filed a whistle blower complaint. Schneiderman's office launched an investigation in April which, despite Thomson Reuters' latest move, is ongoing.

In a statement, Schneiderman's office says: "That two second advantage is more than enough time for these traders to take unfair advantage of their early access to this information as they execute enormous volumes of trades in the blink of an eye."

Although it has discontinued the practice, Thomson Reuters has defended it, with spokesman Lemuel Brewster telling the New York Times: "Thomson Reuters strongly believes that news and information companies can legally distribute nongovernmental data and exclusive news through services provided to fee-paying subscribers.

"It is widely understood that news and information companies compete for exclusive news and differentiated content to help their customers make better informed trading and investment decisions."

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

Singapore turns to Thomson Reuters for currency benchmark calculations

Singapore turns to Thomson Reuters for currency benchmark calculations

18 June 2013  |  4072 views  |  0 comments | 3 tweets | 5 linkedin
Bloomberg hires former IBM chief Palmisiano to conduct data privacy probe

Bloomberg hires former IBM chief Palmisiano to conduct data privacy probe

20 May 2013  |  5002 views  |  0 comments | 3 tweets | 2 linkedin
CME Group vows to tackle loophole being tapped by HFT firms

CME Group vows to tackle loophole being tapped by HFT firms

01 May 2013  |  5909 views  |  0 comments | 1 linkedin
Study questions MiFID II HFT plans

Study questions MiFID II HFT plans

03 September 2012  |  7081 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comdownload the paper nowvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
16704 views comments | 40 tweets | 76 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
13115 views comments | 28 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11752 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10963 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10853 views comments | 10 tweets | 8 linkedin

Featured job

Find your next job