You may have read an article in today’s Wall Street Journal concerning High Frequency Trading (HFT). Financial Regulations reporter and author Scott Patterson published a new article uncovering the impact a newswire can have on HFT – and that certain newswires’ distribution practices are giving these HFT firms a competitive edge over other investors.
The article – Speed Traders Get an Edge: Paying for Direct Access to News Releases Can Give a Lucrative Time Advantage – is available here for WSJ subscribers.
We want to share with you our point of view on this important issue. PR Newswire has, over its nearly 60 year history, worked to ensure that our clients’ material disclosures are disseminated fairly to all parties and are compliant with federal regulations for news dissemination and industry best practices.
Many market experts and financial pundits expanded the discussion, including from the “god-father of RegFD,” ex-SEC Chairman Arthur Levitt who shared that the points addressed in The Wall Street Journal article added to the “perception that markets favor large investors over small [and as a result] drives individual investors out.”
Our bottom-line is PR Newswire made a conscious business decision not to sell High Frequency (HFT) nor algorithmic trading firms our Disclosure Feed. We believe this decision serves the best interests of both our corporate clients and the capital markets.
Have a great day.