ECB Study Says Investors Profit Off Prerelease US Data

Law360, New York (May 2, 2016, 9:28 PM EDT) -- Investors have reaped millions by trading on macroeconomic announcements from U.S. regulators before the data is actually released, gaining an advantage from leakage and proprietary information, a working paper released Monday by European Central Bank researchers said.

A group of researchers from the U.S. and Europe studied 30 macroeconomic announcements made by U.S. regulators, including announcements regarding the consumer price index, existing home sales and gross domestic product, and found 21 of those announcements affected markets, and in those cases market prices typically began to “drift”...
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