House committee to hold hearing on how data released to biz media
by Chris Roush
A U.S. House panel will hold a hearing June 6 to examine a series of changes planned by the Department of Labor around its release of the U.S. jobs report and other key data to the business media.
Geoffrey Rogow of Dow Jones Newswires writes, “The hearing is expected to examine the ‘politicization’ of data-release practices at the Labor Department, according to a notice from Rep. Issa that was reviewed by Dow Jones Newswires. Solis was appointed by President Barack Obama. Galvin has been with the Bureau of Labor Statistics since 1978.
“Beginning in July, the Labor Department will no longer allow news agencies to use customized computer networks to send market-moving employment data to a range of clients, including traders. Currently, a number of news agencies, including Dow Jones & Co., publisher of this newswire, maintain specialized hardware and software on government premises.
“The hardware allows the news organizations to transmit data to subscribers as soon as it is released. Some traders pay for access to feeds that allow the speediest delivery of the data. These ‘high-speed’ firms often make trades within microseconds after the data are released.
“A representative for the Department of Labor couldn’t immediately be reached for comment.
“The hearing comes roughly three weeks after a U.S. senator raised concerns over the Labor Department’s plan to change the procedures used by journalists to report on data from the department, including the monthly nonfarm payrolls report.”
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