Categories: OLD Media Moves

Business Wire to stop serving high-frequency traders

Business Wire, a company that publishes and distributes corporate earnings and other news releases, will stop providing its service directly to high-frequency trading firms, reports Steve Rothwell of the Associated Press.

Rothwell writes, “The decision comes after an article in the Wall Street Journal earlier this month highlighted the advantage that high-frequency trading firms had gained by getting the information directly from Business Wire, rather than accessing it through financial news wires such as ThomsonReuters, Dow Jones and Bloomberg.

“High-frequency traders typically use computer programs to scan corporate earnings and then place buy or sell orders within fractions of a second. By bypassing the newswires and getting the corporate releases directly, the traders were gaining a crucial advantage.

“Even though the direct distribution of its electronic feeds to a ‘handful’ of trading firms was not illegal, the company said it was concerned about its reputation. Business Wire made the decision after consulting with Warren Buffett, the chairman of Berkshire Hathaway, which owns the company.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

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