Regulatory Compliance: The Use of Twitter in Financial Services

Twitter has emerged as a source of market-moving information. But it’s difficult to get Twitter delivered to your trading desk, for a variety of reasons, ranging from concerns about market abuse, to the proliferation of fake news and the potential risk of reputational damage.

By banning Twitter, trading firm management may be seeking to avoid regulatory censure and possibly huge fines, and mitigate the risk of scandal. While that may be understandable, the banning of Twitter from trading floors essentially denies dealers access to what’s becoming an important source of breaking news.

This paper discusses the issues around using Twitter as a market information ‘feed’, and describes Market EarlyBird’s solution to the problem.