CNBC says the Fed is asking news organizations weather there was an early leak of the FOMC statement.
Some traders in Chicago appear to have had access to the Fed’s decision before anyone else in the Windy City. According to trading data reviewed by CNBC, they began buying in Chicago-traded assets just before others in that city could possibly have been aware of the Fed’s decision. By one estimate, as much as $600 million in assets changed hands in the milliseconds before most other traders in Chicago could learn of the Fed’s September surprise—a sharp contrast to the very low volume of trading ahead of the Fed’s decision.
In my mind, there was definitely something fishy going on. EUR/USD moved ahead of the decision and gold was especially visible. They characterize the trades as ones done milliseconds before they were theoretically possible but the one-minute chart of gold shows moves up to 4 minutes before the release.
gold chart showing early release of FOMC statement
The Fed should be ashamed of itself for failing to keep the statement under wraps.
