NEW YORK: Press-release-distribution company Marketwired is no longer providing its service to high-frequency traders.
The move, announced by New York Attorney General Eric Schneiderman on Wednesday, followed his comments earlier this week that he would probe high-frequency traders’ access to market-moving information, or "Insider Trading 2.0," as he called it.
Marketwired made the decision to no longer sell to high-frequency traders prior to any discussions with Schneiderman and subsequently notified him of the decision, according to a statement.
The service will continue to provide "full and fair, simultaneous disclosure of information," adding that it will eliminate any perceived advantages gained through technology by certain customers.
"Our decision enables us to continue serving our customers under the highest ethical standards that Marketwired holds," the company said in the statement.
Marketwired is working with Racepoint Global to communicate the changes. A Racepoint representative confirmed the firm is working with the company, but was unable to disclose the strategy for communicating the changes.
As of publication, Marketwired did not have an announcement about the reversal or any other information on its website.
Last month, Berkshire Hathaway subsidiary Business Wire, which offers a service similar to that of Marketwired, cut off high-frequency trading firms after discussions with Schneiderman. The decision was made to protect the company’s reputation, not because it granted any advantage to traders, Business Wire chair Cathy Baron Tamraz said in media reports.
Seeking to crack down on investors’ early access to analyst and consumer sentiment, Schneiderman has also pressured companies such as asset manager BlackRock to end its analyst-survey program worldwide in January, as well as encouraging Thomson Reuters to suspend investors’ two-second-early peeks at an economic survey last July.