Wednesday, September 30, 2009

Paying to Front Run

The stock market started to dive minutes before the weak Chicago PMI was released this morning. Front running? Sort of.

The Chicago PMI is assembled by Kingsbury International. Bespoke Investment Group explains the trading that occurred before the pre-public release this way:
On the company's website, Kingsbury describes the Chicago PMI as, "a proven monthly ‘first look’ at business,government and NGO economic activity in the USA." They then go on to say that subscribers to Kingsbury's data will receive "access to this market-moving data 3 minutes before public release." In other words, Kingsbury will 'leak' the report to anyone who is willing to pay at least $200 per month

No comments:

Post a Comment