Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

War of the Wall Street robots

Queena Kim Feb 21, 2014

Business Wire says it will stop selling direct access of its financial information to to high-speed traders

The brave new world of high-speed trading is run by algorithms and super fast computers that quickly take in information and just as quickly buy and sell stocks on that data, said Michael Henry is a consultant at Accenture

The people who are running the trading platforms are in a rush to get to the nanosecond level. Even milliseconds can make a difference… That’s the name of the game in high speed trading.”

The Berkshire Hathaway-owned wire service coming under scrutiny for the practice: New York Attorney General Eric Schneiderman called it “insider trading 2.0.”

The perception was that high-speed traders had an unfair advantage by getting financial information even milli-seconds faster than the general public. Business Wire CEO has said that there was NO time advantage but it’s stopped direct access because of that misperception. 

Henry says the decision won’t have an impact on the market: I think this is a symbolic move.” Henry says that’s because these days, high-speed traders can get that same information in a million different places.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.