Huge securities trading spike occurs before it would be possible to even receive the information electronically, much less react to it after reading it.
“[T]he Fed news was certainly present in trading centers in Chicago and New York before 2pm. The evidence is overwhelming. It is unknown how many people had access to this information – for a timed news release, it would have been at least an administrator, probably Q.A. and others. What we do know is the resulting explosion of trading just 1 thousandth of a second after 2pm, was unprecedented in the history of Fed news announcements, and much of that trading was based on information obtained before the set Federal Reserve Board release time.”
I’m betting that there won’t be any prosecutions.
The first transatlantic cable to be laid in 10 years will not carry voice or Internet data. Instead, the line from New York to London will beam financial data to money marketers and hedge fund traders. And thanks to a shorter route than its competitors, the fiberoptic cable will transmit information across the Atlantic 5 milliseconds faster.
Read more: A Transatlantic Cable to Shave 5 Milliseconds off Stock Trades – Popular Mechanics
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