Suspicious Minds? Dubious Trades Before Jobs Report in Three Charts

Another major economic report, another round of speculation about suspicious trading activity seconds before its release. A number of futures contracts Tuesday morning showed “distinct activity just before 8:30:00,” says Eric Hunsader, founder of Nanex, a Chicago firm that studies and distributes stock-market data. He illustrated the moves in a number of charts on his firm’s website. The September jobs report was released at 8:30 a.m. Eastern Time after being delayed by more than two weeks due to the partial government shutdown. The report showed U.S. employers added just 148,000 jobs last month, a sign the labor market stumbled heading into Washington’s latest round of budget battles. Mr Hunsader is no stranger to pointing out suspicious trading and some critics contend his data doesn’t always tell the full story. Yet, these days, it’s no longer a question of whether some players are getting a faster look at market-moving news, but whether it should be allowed. Government agencies and other producers of widely-watched economic reports are pondering new ways of releasing information with the aim of leveling the playing field. Not for the first time, suspicions are rife…the time has surely come for ‘fair game’.

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