September 19, 2013

FRB Statement Exceeds Speed of Light? Sep 18 2013

FRB statement exceeds speed of light? Sep 18 2013.
Nanex on Federal Reserve’s Sep 18 policy statement 
Market reaction to the FOMC news was instant.

The Fed news had to be released early to a news service that pre-loaded machines timed to release the news at exactly 14:00:00.000. The reaction in Chicago was at the same exact millisecond as the reaction in New York - both cities separated by about 5-7 milliseconds of time. Compare the charts of ES Futures (traded in Chicago) with SPY (traded in New York, well, technically New Jersey).

Did the Fed statement exceed the speed of light or 
Why is the Fed giving early access to market impacting news (an understatement) to private news services who turn around and sell this data to co-located high frequency traders? This is not privately compiled information. This is information paid for by all U.S. Taxpayers.

Tags: fomc policy statement, frb policy statement, fomc statement early access, frb early access