SEC probes Thomson Reuters contract with data supplier

The SEC is looking at the contract between Thomson Reuters and the Institute for Supply Management, whose manufacturing data is published by Thomson Reuters to its high-speed data clients.

CNBC reported earlier this month that the data was inadvertently sent out early by Thomson Reuters on 3 June to its high-speed clients, many of whom immediately traded on the information. There was a sharp market reaction to that burst of computer trading of shares worth $28 million, triggering a downward surge 15 milliseconds ahead of the official release time for the data.

ISM chief executive Thomas Derry told CNBC that the SEC reacted to its previous report by asking Thomson Reuters for a copy of its contract with ISM. The two organisations released a redacted form of the contract to the SEC, he said, adding: “The SEC did speak specifically to Thomson Reuters about our relationship. We have not been contacted by any government entity.”

Derry said that in the wake of the incident ISM had spoken to Thomson Reuters about the mechanics of the release of data, and he was satisfied that the situation would not be repeated. “We have to be smart enough with our partners to manage the process appropriately so we’re not giving anyone a running start,” he said. “I’m very confident that Thomson Reuters has put itself in a place for no more repeat of the premature release.”

CNBC said a spokesperson for Thomson Reuters did not immediately respond to its request for comment. ■