real-time news and commentary for investors
Tuesday, Sep 24
Did some traders get "no taper" decision early?
- The Fed has contacted a number of news organizations to talk about embargoes after unusual trading patterns were spotted around the surprise news of its non-taper last week, reports CNBC. Some traders in Chicago appeared to get the news ahead of others in town and placed hundreds of millions in bets on futures contracts just milliseconds ahead the shock announcement.
- Nanex's Eric Hunsader first spotted the unusual pattern and alerted CNBC to it.
- This is Albert Einstein territory - information can only travel as fast as the speed of light; therefore a decision released in D.C. can take 7 milliseconds to hit Chicago. Properly placed and outfitted high-speed trading firms can exploit this window.