The distribution of U.S. consumer confidence data from the University of Michigan is set to shift from Thomson Reuters to Bloomberg LP, ending the practice of giving high-frequency traders early access to the numbers.
New York state attorney general, Eric Schneiderman, welcomed the agreement between the University of Michigan and Bloomberg to take over distribution of the survey from Thomson Reuters, which will be distributed through Bloomberg’s news service. Bloomberg will also end the practice of selling an advance copy of the survey to high-speed traders, he says.
Last summer, Schneiderman reached a deal with Thomson Reuters to suspend the practice of providing an early look at the Michigan consumer survey results to high-frequency traders, pending the results of his office’s investigation into the advantages that high frequency traders appear to have in terms of access to market-moving data. He notes that the university’s move to distribute the information through Bloomberg ends the practice permanently.
“By ending early access to critical market-moving survey data information, this deal strikes a major blow in our effort to promote fairness and avoid unfair distortions in the securities markets by cracking down on what I call ‘Insider Trading 2.0,’ ” Schneiderman said. “Ensuring there is one set of rules for the entire market is critical to restoring confidence in securities markets, and that’s good for everyone involved.”