Hi everyone,
Hope you're all enjoying your Fridays! I recently read an article on dealbreaker (http://dealbreaker.com/2013/06/lots-of-people-think-paying-for-news-sho…) regarding the express release of Michigan's consumer sentiment survey to certain high paying subscribers on Reuters. This morning I was also watching CNBC and listening to the idiots at the Halftime Report ranting about how it should be illegal due to the early release of material market making news etc, etc.
However, after reading the dealbreaker article and some of the WSJ's quotes on the matter, I don't really find this 2 second high speed service that much of a problem, and even found it amusing that the WSJ itself admitted to only releasing certain info to subscribers (though no doubt, there is at least a slight difference between the two sets of info).
I'm just wondering what others here have to say about the subject and whether or not it is actually a big deal.
The comparison I thought of, which I haven't heard anyone else state, is with market data. You don't pay there's a 20 minute delay. You need to pay to have the real-time data. So if Reuters is charging to release the report to certain clients 2 seconds early how is the exchanges only providing real time data to those who pay not also illegal? I'm sure the costs are way different but I'm speaking more on just general principal.
I think the 20 min delay is for legal reasons. Its easy to get real time data for free (demo).
2 seconds makes a huge difference when you have a computer executing orders in the order of 10s of millions of shares.
I understand that it makes a difference if you're using HFT, but if you aren't then I'm not sure why people would complain so much. Its not like a person could analyze the data in that two seconds, so if you're using HFT you're also probably already paying for real time data.
Basically information in the finance industry has always been for sale (go onto Yahoo! finance and see how much they charge for reports). Whether or not you receive it 2 seconds faster is up to the discretion of the consumer.
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