Studies Link Profit To Early Release of Fed Data

A study by Singapore-based researchers and a quantitative report by high frequency trading professional Eric Hunsader come to the same conclusion: Privileged traders are receiving information before most of the market. The difference between the two is that the research from Gennaro Bernile, Jianfeng Hu and Yuehua Tang at Singapore Management University looks at the issue from well before the release, expanding the study time horizon while Hunsader, typically, is focusing on the real short term: milliseconds.

Large volume of buy and sell orders ahead of Fed data release: Singapore report

The Singapore study, quoted in...