WASHINGTON, Sept 24 The U.S. Federal Reserve
said on Tuesday it was following up with news organizations over
a report of unusual trading around the release of its monetary
policy statement last week.
The report by CNBC television cited a wave of trading
activity in Chicago at 2:00 pm ET (1800 GMT) on Wednesday, which
appeared milliseconds ahead of other trades when the Fed stunned
investors by deciding not to taper its $85 billion per month in
The Fed's decision spurred a broad rally in financial
markets, including gold. "Some traders in Chicago appear to have
had access to the Fed's decision before anyone else in the Windy
City," CNBC said in its report.
CNBC credited Chicago research firm Nanex for spotting
significant activity in Comex gold futures, traded in Chicago,
which it calculated was five to seven milliseconds ahead of a
subsequent spike in gold transactions in New York.
Normally, Nanex said, traders in New York would have about a
five milliseconds advantage over traders in Chicago on news
coming from Washington because of their proximity to the
nation's capital and the time it takes for the data to be
"As is generally the case with other releases of
market-sensitive information by government agencies, news
organizations receiving embargoed information from the Federal
Reserve agree in writing to make no public use of the
information until the time set for its release," a Fed spokesman
"We will be conducting follow-up conversations with news
organizations to ensure our procedures are completely
understood," he added.
There was no immediate comment from officials at electronic
news vendors Thomson Reuters, Bloomberg, Dow Jones or
Market News International on whether they had been contacted by