Thomson Reuters suspends early release of key data

From 12 July, all Thomson Reuters clients will receive the twice-monthly consumer confidence data at 0955 ET, five minutes before it is issued to the public by press release at 1000 ET. The company usually releases the data to about a dozen clients at 0954:58, two seconds ahead of its publication to other desk-top subscribers. This is enough to give them a lucrative computer-driven trading advantage over other market players.

The company has an agreement with the University of Michigan, which compiles the closely-watched figures, to allow subscribers who pay a premium to receive them two seconds before others. The arrangement is under review by New York attorney general Eric Schneiderman. The review follows a series of media reports about the early release of the data and a lawsuit in Manhattan Federal Court by former Thomson Reuters salesman Mark Rosenblum, who says he was fired last August for whistle-blowing activity.

Thomson Reuters has not disclosed how much it charges clients for the data or how much it pays the University of Michigan. The New York Times said on Sunday that Thomson Reuters pays the university at least $1 million a year to release the data early to its money management clients and that some of them pay more than $6,000 a month for the two-second advantage.

“Thomson Reuters strongly believes that news and information companies can legally distribute non-governmental data and exclusive news through services provided to fee-paying subscribers,” said company spokesman Lemuel Brewster. “It is widely understood that news and information companies compete for exclusive news and differentiated content to help their customers make better informed trading and investment decisions.”

Rosenblum says in his claim for illegal dismissal that he believed distribution of the data at different times violated insider-trading laws and in June 2012 he contacted the Federal Bureau of Investigation and Thomson Reuters executives.

Thomson Reuters has previously said the accusations were “unsubstantiated and without merit”. ■