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Business Wire, a company that publishes and distributes corporate earnings and other news releases, will stop providing its service directly to high-frequency trading firms.
The decision comes after an article in The Wall Street Journal earlier this month highlighted the advantage that high-frequency trading firms had gained by getting the information directly from Business Wire, rather than accessing it through financial news wires such as ThomsonReuters, Dow Jones, and Bloomberg.
Typically, high-frequency traders use computer programs to scan corporate earnings and then place buy or sell orders within fractions of a second. By bypassing the newswires and getting the corporate releases directly, the traders were gaining a crucial advantage.