More HFT shenanigans... from the WSJ no less, once esteemed for integrity.
High-Frequency Traders Flat-Out Buying Data Ahead of You
'When the Institute for Supply Management releases its index of manufacturing activity next week, the headlines from the report will flash to traders at what their eyes tell them is 10:00 am. But unless they are subscribers to a new low-latency feed provided by Thomson Reuters, they’ll actually be getting it late—and depending on how they’re positioned, it could be too late. The ISM is just one of the private data providers that are increasingly splitting their dissemination policies.
[...]
Then there’s somewhat thorny issue of financial benefits.
Though ISM, as a non-profit, can’t derive revenue from this specialized delivery, it is a big business for others. The potential beneficiaries include news delivery services such as Thomson Reuters, Bloomberg and News Corp. unit Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal. Also winning side: data center operators such as AT&T Co. and the trading firms themselves. Paul Rowady, a senior analyst at independent research firm the Tabb Group, said firms delivering data feeds could charge $25,000 or more for access to the data, or could include it in a broader package of products. He noted that this type of data, where there is a known catalyst released at a specific time, is the most sought after by high-speed traders, calling it the “low-hanging fruit” for highly automated strategies.
“When you know it’s coming, you can get your catcher’s mitt ready,” Rowady said.
blogs.wsj.com
Jim
[The corruption continues] |
