| NEW YORK, April 29
NEW YORK, April 29 PR Newswire will require
customers that receive direct feeds of its market-moving
releases to certify they will not engage in high-frequency
trading on the information, New York Attorney General Eric
Schneiderman said late Tuesday.
Schneiderman has been conducting a sweeping investigation
of Wall Street practices that provide elite groups of traders
with early access to information. He says early access, even by
milliseconds, gives the high-tech traders unfair advantages.
Marketwired and Berkshire Hathaway Inc's Business
Wire, which also distribute news releases, agreed to stop
providing direct feeds to high-frequency traders earlier this
PR Newswire has never supplied its direct data feed to high
frequency trading firms, a company spokesman said.
PR Newswire agreed to the new requirements for those who
receive direct data feeds and also said it would tell clients
releasing information upon the close of the markets to do so at
Some exchanges, including the Nasdaq, allow
trading "for milliseconds" beyond the 4 p.m. closing time, so
the traders can sometimes exploit close-of-market releases, the
attorney general's office said.
PR Newswire is "going the extra mile to ensure its service
is not abused by high frequency traders," Schneiderman said in a
PR Newswire's new practices solidify the company's
"position promoting fair access to market-moving information,"
the company's chief executive, Ninan Chacko, said in a
The attorney general also has begun meeting with exchanges
and alternative trading venues, known as dark pools, to discuss
Earlier this month, he sent subpoenas to at least six high
frequency trading firms seeking information on their
relationships with exchanges.
He also has scrutinized the early release of analyst and
consumer sentiment data.
(Reporting By Karen Freifeld; Editing by Steve Orlofsky)