Ruling on stock report distribution to affect big info companies?
Theflyonthewall.com had carved out an interesting niche for itself offering a service that publishes Wall Street research as soon as it is released, often before the research has made its way to clients. The New Jersey firm charges $50 a month, or $480 annually. Wall Street banks went to court and just won a ruling that requires the startup, which has about 30 employees, to delay publication of their content.
The company now must wait until 10 a.m. to report research that was issued before the market opens, and at least two hours for research issued after the open. The banks sought longer delays. The judge made clear that his ruling affect not just startups but also big news diseminators, like Bloomberg (Bloomberg news), Thomson Reuters (Reuters news) and Dow Jones. They are now expected to comply, but they might not be inclined to take this sitting down. This is essentially a court-enforced news embargo on analysts' reports. But traditionally an outlet could choose not to abide by the embargo and try to get the news on its own. This may end up being a first amendment issue.
- here's the Reuters article