PR Newswire said it will make users of its direct data feed certify that they will not engage in high-speed trading and will advise customers to delay news slated for the market close to wait until after 4 p.m.
The moves were announced April 30 by Attorney General Eric Schneiderman, who has previously lauded moves by Business Wire and Marketwired to stop high-frequency trading. Unlike Business and Marketwired, PRN did not previously sell its direct data feed to high-speed traders.
Schneiderman praised PRN as an "industry leader" for "going the extra mile to ensure its service is not abused."
PRN will advise customers who want to release potentially market-moving news at the closing bell to wait until 4:01 p.m. EST to make sure high-speed traders do not gain a millisecond advantage to trade on the news on the same market day.
CEO Ninan Chacko said the new measures turns its practice into a "more rigorous and formalized" company policy. "Since our inception, we have taken a proactive approach to establishing practices that supply material news to investors and the general public equitably," he said.
Business Wire in February stopped licensing its direct feeds to high-frequency traders after the Wall Street Journal highlighted the practice in a Feb. 7 piece. Marketwired followed suit in March.
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