(AP) — The Federal Reserve is concerned about suspiciously heavy trading of gold futures after its meeting last week that may have been triggered by a premature release of market-sensitive information.
In a statement, the central bank said Tuesday that news organizations that receive embargoed information from the Fed agree to withhold information until the time set for its release. The Fed statement said, "We will be conducting follow-up conversations with news organizations to ensure our procedures are completely understood."
After the meeting, the Fed said it would hold off on slowing its $85-billion-a-month in bond purchases. That surprised markets and led to a day of record highs on Wall Street.
Trading in financial markets is now dominated by automated computer systems, which make trades in tiny fractions of a second that can lead to millions of dollars in profit. Receiving the data early — even by a few milliseconds — can give an unfair advantage to some firms.
The security of sensitive, market-moving information has become a concern for federal officials. Possible leaks of government data have already led the Labor Department to tighten its procedures for distributing information early to reporters, including the closely monitored monthly employment report.
Labor also revoked early access for some media organizations.
MORE http://www.huffingtonpost.com/2013/09/25/federal-reserve-trading_n_3987639.html?utm_hp_ref=business
MySpace Tweet Facebook Facebook
Comment
"Destroying the New World Order"
THANK YOU FOR SUPPORTING THE SITE!
© 2025 Created by truth.
Powered by
You need to be a member of 12160 Social Network to add comments!
Join 12160 Social Network