Economics @ ITT

Latency In Trading

Posted in economics by ittecon on June 18, 2013

Efficient markets, my arse.

The current target of collective ire is Thomson Reuters. There was some shady trading ahead of the Consumer Confidence number at the end of last month. About a quarter of a second before the number was released, there was an eruption of orders in the SPDR S&P Sector ETF SPY, the e-Mini electronically traded futures, and in hundreds of stocks, according to Nanex, a market research firm.

After some digging CNBCs Eamon Javers reported that the source of the early trading was Thomson Reuters. The company has a well-known deal with the University of Michigan, the source of the data, that allows Thomson Reuters to release that data 5 minutes before its supposed to come out 9:55 am to clients who pay for that privilege.

via Latency In Trading – Business Insider.


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