Bloomberg to bring Wall Street to Twitter
Bloomberg has begun to integrate Twitter into its real time financial data monitor, following the Security Exchange Commission’s decision to allow finance companies to announce key information via social media earlier this week.
This decision means financial companies will be able to comply with the Regulation Fair Disclosure through social media, as long as investors are alerted about what social network will be used to distribute the information.
Business Wire has expressed concerns about the rules, saying they would “pose a disservice to the investment community” and could endanger ‘the “level playing field”- that is at the core of Regulatory Fair Disclosure”.
“Business Wire, which makes extensive use of Twitter (with 61 industry Twitter feeds) and other social media tools as part of its multi-channel distribution platform, believes that social media should be leveraged as part of a broader news dissemination strategy. Reliance on social media alone, even in accordance with the SEC’s newly issued guidelines, will likely negatively impact market fairness and investor awareness.”
However, Jean Paul Zammit, head of sales and product development for Bloomberg Professional, said that when important news breaks on Twitter “traders and investors need to be able to access it and validate its importance in order to incorporate that information into their decision-making process”.
Bloomberg’s aim behind using Twitter is that market users will be able to access a variety of market-moving information through one channel, rather than having to monitor separate systems.
Bloomberg will select tweets from corporations, central banking officials, economists, commentators and others who are influential to the financial markets to appear on its news feed. Subscribers will also be able to filter tweets by industry sector, person, or topic.
The move by the SEC is a boon for companies like StockTwits, which has been keeping individual investors and hedge funds informed on Twitter for years. When StockTwits was set up in 2008 sharing this sort of information via Twitter was considered a ‘taboo’ in finance, but gradually some banks, such as Morgan Stanley, have started to allow its financial advisors to Tweet.
Still many Wall Street banks do prevent employees using social networking sites at work, and the firms that do not ban it completely carefully control any social media use, but the move shows the rising importance Twitter will have.