New #research from @IreneAldridge shows wide-spread #frontrunning in #finance and #trading ahead of #news
Irene Aldridge of Able Alpha and AbleMarkets.com has released her latest research showing the wide-spread front-running ahead of major economic news announcements. The complete paper can be downloaded here.
This study presents evidence that much of the trading on macro-economic news occurs prior to the scheduled news announcement times. Examining the trading patterns ahead of the ISM Manufacturing Index and Construction Spending announcement, we find that the trading on the not-yet-publicly released embargoed news consistently takes place as long as 30 minutes ahead of the news announcement times. As much as three quarters of the pre-announcement price move appears to be driven by aggressive HFTs.
Please click here to download the research article now.