Addressing concerns that high-speed trading firms unfairly benefited from licensing direct feeds, Business Wire, a press release distribution service owned by Berkshire Hathaway, will no longer allow the practice. The decision, the company says in a statement, in part responds to a story critical of the practice in a recent edition of the Wall Street Journal.
“There was nothing wrong in Business Wire serving these handful of HFTs directly,” the company said. “These traders had absolutely no time advantage in receiving material news from Business Wire, which… disseminates news simultaneously and in real-time to all market participants, and in accordance with Regulation Fair Disclosure. “
