Thomson Reuters is expected to suspend the practice of selling so-called sneak peeks of certain economic data to select clients, according to the New York Times. The move comes as the New York Attorney General is investigating the company over its release of Consumer Confidence Data to some clients two seconds ahead of its official public release. The New York Times has the details:
On two Fridays a month at 10 a.m. Eastern time, the widely cited and often market-moving economic survey known as the consumer confidence index is posted by the [University of Michigan].
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.
Click on the audio player above to hear more about Reuters sneak peaks and high frequency trading.