Unraveling Monday’s Early Data Release to Traders

Unraveling Monday’s Early Data Release to Traders

Monday’s market-moving ISM manufacturing data was inadvertently sent early by Thomson Reuters to a select group of high-frequency traders, many of whom immediately traded on the information before it was available to the wider market, CNBC has learned.

The ISM manufacturing data, which on Monday came in disappointingly low and sent traders scrambling to sell shares, was set to be released at precisely 10 a.m. by the Institute for Supply Management, a private entity that puts out the data each month.

But analysts at Nanex LLC, a Chicago-area analysis firm spotted a sharp downward market reaction just before 10 a.m., setting up a mystery: How did some traders appear to know the data would disappoint the market before the scheduled release time?

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This entry was posted in Business, Equity Markets, Finance, High Frequency Trading, Wall Street and tagged . Bookmark the permalink.

One Response to Unraveling Monday’s Early Data Release to Traders

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