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by nomailing
3959 days ago
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I am wondering if this centralized infrastructure for financial news is actually a good idea. This could always happen again and again. All the employees in these news companies could get a mass of insider information which they could sell. Isn't maybe an alternative decentralized news publishing service a better idea? Couldn't the CEO of a company publish their financial news only on their own website at the given publication date? Why is it necessary for these news to be stored in some central news database days before their publishing date?
And I mean these as honest questions because I have really no idea what the advantage would be? And another related question: wouldn't it make sense with today's Internet infrastructure to reduce the interval between earnings reports. Maybe it could even be something like a continous automatic publishing of these company finances. Always when some financials change it could directly be published. That way all investors would at all times have the same information as the insiders, so everyone would be on the same level. Of course some extraordinary news like mergers or acquisitions might still give some people insider information who prepare the deal, but at least the quarterly earnings could not be insider information. |
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Amusingly it's because of the hedge funds. They want to have a limited list of places to check for news to make sure no one gets there ahead of them.
This is why they were so upset when the Netflix CEO made something public on Facebook -- because they weren't watching his Facebook page for news (but they sure are now!).
The SEC actually has a very limited set of places that you can release financial news because of this.