Thomson Reuters pays the university at least $1 million a year to distribute that data early to its money management customers on an exclusive basis.
The company offers clients of its news service the opportunity to pay to receive the information on a conference call at 9:55 a.m.
But an elite group of about a dozen clients, which includes some of the world’s most powerful money managers, pays Thomson Reuters an additional fee to receive it at 9:54:58 — two seconds before everyone else. Some of the clients pay the company more than $6,000 a month for this early release.
The company packages the information for these clients in a format that allows their high-speed, computer-driven trading systems to exploit the data, making rapid-fire trades in stocks and futures before others gain access to it.
But no more :
Thomson Reuters, is expected to announce that it will suspend the practice, yielding to pressure from the New York attorney general, according to a person with direct knowledge of the matter
Not quite accurate, but near to the reality, because subscribers of all insititutional services get ALWAYS the preliminary pre-release data 30 minutes in advance of the public release.
Umich no longer available early only for HFTs.
Infact this two seconds statement refers ONLY to the HFT subscriptions.
And also the HSBC datas are always available to the subscribers in advance of the public release, and Bloomberg also provides the HFTs their data in advance of the public releases.
Insider trading is a very common practice, but sometimes not everything goes in the right direction.
