Nanex Research

Nanex ~ 28-Oct-2013 ~ Fed News Gets an Internet Kill Switch

Bring the Fed Trading Bandits to Justice

On October 25, 2013, the Federal Reserve announced it would add an Internet Kill Switch (among other measures) to prevent future leaks of FOMC news announcements. We proved with market data that the September 18, 2013 Fed (FOMC no-taper) news release must have been secreted out of the Treasury Department and placed on computers in New York and Chicago trading centers sometime before the official 2 PM release from Washington, D.C. We strongly encourage you to read Einstein and the Great Fed Robbery.

We have since learned, from people familiar with the matter, that one or more news organizations secreted the Fed news out of the Treasury Department before 2 PM and loaded it onto servers in trading centers in New York and Chicago. This has not yet been disclosed publicly.

For a list of all news organizations with a machine readable news service who were in the Fed lockup room, read Eamon's breaking coverage of the Great Fed Robbery. Eamon Javers is the journalist who broke the story on the Conference Board's release of consumer confidence numbers, which led to a policy change after one media outlet confessed to an early release. Not to be confused with the Thompson Reuter's early release of the University of Michigan's Consumer Sentiment, which Eamon Javers also first reported on and which also led to a policy change. Eamon Javers is 3 for 3 in 5 months!

Many questions remain unanswered:

Recommended Action

It seems reasonable that the guilty party should be banned from future Fed announcements for a period of 1 year and pay a fine equal to 3 times the cost of the service. Reputable news organizations don't participate in breaking/bending rules. At the very least, we would expect when confronted with evidence, a reputable news service would immediately confess about any involvement.

Whistle Blowers

Do you have information about the Great Fed Robbery? Contact one or more of the whistle blower offices below, the reward could be substantial.

This event has all the elements for a great financial thriller (novel/movie).

1. Hunsader Speaking at the Chicago Fed October 24, 2013

2. U.S. stock trades during a second of time around FOMC news on September 18, 2013 (13:59:59.500 to 14:00:00.600).
Over $1 billion worth of stocks and futures traded in the first 1/100th of a second after the official release time.

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