The ranking Republican on the Senate Judiciary Committee has sent the University of Michigan a letter with questions as part of an investigation into Thomson Reuters’ distribution of a consumer sentiment index conducted by the university every month according to a report from MarketWatch.
Clik here to view.
Thomson Reuters previously announced that it will continue to release the University of Michigan-produced survey to its clients at 9:55 a.m. but will not give the information to special subscribers two seconds early.
The senate inquiries comes in addition to an investigation by the New York attorney general who is trying to determine whether Thomson Reuters’ system of releasing the information contained in the report violates insider trading regulations. The company releases the data in the report to paying subscribers at 9:55 a.m. and to the public at 10 a.m. An additional group of premium subscribers can access the information at 9:54:58 a.m. — two seconds before anyone else.
According to the Wall Street Journal, subscribers pay up to $6,025 per month for the early information. Thomson Reuters pays the university $1.1 million to conduct the survey, which includes more than 500 phone interviews conducted every month, to determine consumer sentiment in regard to personal finances, business conditions and buying conditions according to the survey’s website.
Fitzgerald previously said the agreement with Thomson Reuters complies with regulations and the index is produced with private funds.
Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Get in touch with Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2
