16 Major Firms May Have Received Early Data From Thomson Reuters, Matt Taibbi...
"Readers may recall an ugly story that broke earlier this summer, when New York State Attorney General Eric Schneiderman rebuked the news/business information firm Thomson Reuters for selling access to key economic survey data two seconds early to high-frequency algorithmic traders. The story strongly suggested that some Thomson Reuters customers were using their two-second head start (an eternity in the modern world of computerized trading) to front-run the markets.
"The early release of market-moving survey data undermines fair play in the markets," Schneiderman said, back in the second week of July. Thomson Reuters suspended the practice of selling two-second head starts after Schneiderman insisted upon a change. Still, the firm defiantly refused to declare the change permanent and insisted that it had the right to "legally distribute non-governmental data" to "fee-paying subscribers.""
snip
"Rosenblum, when he became aware of this practice, quickly became concerned that it was improper and perhaps violated federal securities laws. By May of 2012, Rosenblum began asking his superiors about the possibility that the practice violated rules. Over the course of the next few months, he claims, he was told in various ways to stop asking meddlesome questions, among other things being informed that his inquiries would affect his bonus, and that he was "sticking [his] nose where it does not belong."
To make a long story short, Rosenblum finally became frustrated in his efforts to get superiors to listen to his concerns, and went to the FBI on June 29th, 2012. A little over a month later, on August 3rd, 2012, he was fired."
http://www.rollingstone.com/politics/blogs/taibblog/16-major-firms-may-have-received-early-data-from-thomson-reuters-20130905
MUCH more to the story at the link. I guess 5 years isn't enough time to reign in the robber barons.
= new reply since forum marked as read
