NY attorney general says PR Newswire to restrict direct data feed use in high-speed trading

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ALBANY, N.Y. – New York’s attorney general says PR Newswire has agreed to require its direct data feed recipients to certify that they won’t use the information in high-frequency trading.

PR Newswire distributes announcements and press releases about earnings and other business developments.

Attorney General Eric Schneiderman says it has also agreed to counsel customers intending to release information at the close of the markets to do so after 4 p.m., to ensure that high-frequency traders can’t trade on the news in the milliseconds after the closing bell.

In earlier agreements with Schneiderman, Business Wire and Marketwired agreed to stop providing similar market-moving data to high-frequency traders.

Ninan Chacko, chief executive of PR Newswire, says since its inception it has worked to establish practices to provide news to shareholders and the public equitably.

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