Back on Monday, following the huge miss in the Manufacturing ISM, in collaboration with Nanex, we exposed yet another instance of blatant headline data frontrunning in "15 Milliseconds Of HFT Fame: Watch Today's Early Leak Of The ISM Print" where we showed aggressive trading amounting to tens of millions in notional contracts ahead of the 10am release of the key economic indicator.
We assumed that just like every other lament about a market that is front-run by those "who have the means", manipulated (by the Fed of course - remember when that was just a conspiracy theory: good times) and simply broken, it would disappear in the ether forever. After all: why bring attention to facts when hopium is sufficient for the E-Trade baby to retire rich and famous before it has hit 2. We were delighted to learn that CNBC's Eamon Javers picked up the torch and actually did some further investigating, which in turn led to an actual admission out of Reuters that it "inadvertently" sent out the data 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." Inadvertently? The humor just never stops.
More from Javers:ISM, which puts out the data, told CNBC on Monday that it believed the data was not released early over its normal distribution method, PR Newswire. In a statement, ISM senior Associate Rose Marie Goupil said, "ISM's data was not released early today, nor is it ever released before 10:00 a.m. eastern time."
But ISM also explained that in 2012, ISM entered into an exclusive agreement with Thomson Reuters to offer "a low latency economic data feed of the data." This super-high speed computerized service, ISM said, included just the data contained in the report and not its full text, which makes it easier for computer trading programs to process the data quickly. "This feed," ISM wrote, "offers subscriptions to low-latency programmatic traders worldwide who have the proper equipment and trading algorithms."
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