Business Wire Terminates Direct Feeds to High Frequency Trading Firms
Tweet
Share
E-mail
Get Alerts BRK-A Hot Sheet
Join SI Premium – FREE
Business Wire said it will no longer allow high frequency trading firms to license direct feeds from the company.
The following is a statement from Cathy Baron Tamraz, Chairwoman and CEO of Business Wire:
Following the February 7, 2014, Wall Street Journal article, and in consultation with Berkshire Hathaway's Chairman, Warren Buffett, Business Wire has made the decision to no longer allow high frequency trading firms to license direct feeds from Business Wire.
As the recent Wall Street Journal article and others have pointed out, there was nothing wrong in Business Wire serving these handful of HFTs directly. These traders had absolutely no time advantage in receiving material news from Business Wire, which operates a patented internet delivery network that disseminates news simultaneously and in real-time to all market participants, and in accordance with Regulation Fair Disclosure.
However, in discussions that have taken place with a few of our clients, we learned that the article may have caused some misperceptions, and that was of deep concern to us.
Our most important assets are our reputation and the trust we have earned from our clients and other market participants for more than a half century. Therefore, we have pro-actively made the decision to terminate these feeds.
The following is a statement from Cathy Baron Tamraz, Chairwoman and CEO of Business Wire:
Following the February 7, 2014, Wall Street Journal article, and in consultation with Berkshire Hathaway's Chairman, Warren Buffett, Business Wire has made the decision to no longer allow high frequency trading firms to license direct feeds from Business Wire.
As the recent Wall Street Journal article and others have pointed out, there was nothing wrong in Business Wire serving these handful of HFTs directly. These traders had absolutely no time advantage in receiving material news from Business Wire, which operates a patented internet delivery network that disseminates news simultaneously and in real-time to all market participants, and in accordance with Regulation Fair Disclosure.
However, in discussions that have taken place with a few of our clients, we learned that the article may have caused some misperceptions, and that was of deep concern to us.
Our most important assets are our reputation and the trust we have earned from our clients and other market participants for more than a half century. Therefore, we have pro-actively made the decision to terminate these feeds.
Create E-mail Alert Related Categories
Hedge Funds, Insiders' Blog, Trader TalkRelated Entities
Warren BuffettSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
