LSE Delay of Company Statements Rolls to More Customers
London Stock Exchange Group Plc (LSE)’s switch forcing customers to register to continue receiving real- time statements on its Regulatory News Service will affect more users from tomorrow.
A 60-minute delay will come into force for market participants who read RNS releases via the Bloomberg LP terminal, according to a statement from the New York-based company. Readers who choose to be enabled for RNS will continue to receive releases in real-time and for no charge. Users of Thomson Reuters Corp. (TRI), which competes with Bloomberg to provide financial news and data, have already been switched.
LSE’s desire to get RNS users’ details has sparked concern the London-based exchange will start charging them to receive statements because it’s unlikely to need the data for any other purpose, two people familiar with the matter said in May last year. The RNS carries nearly 175,000 statements each year via data vendors such as Thomson Reuters and Bloomberg, the parent of Bloomberg News. LSE says it features more than 70 percent of price-sensitive U.K. announcements.
Thomson Reuters wasn’t immediately available to comment on the RNS changes when contacted by Bloomberg News.
“LSE has implemented a phased registration for its Regulatory News Service as part of an ongoing customer consultation,” Rawdon McMaster, head of RNS, said in an e- mailed statement via LSE’s press office. “Working with vendors and information consumers throughout the process, the consultation is aimed at better understanding the users of our data to ensure our customers are receiving the best possible level of service.”
Publicly listed companies in the U.K. must disseminate statements through one of seven approved Regulated Information Services, or RISs, to ensure that investors receive market- moving news at the same instant. The RNS had a monopoly on regulatory statements until 2002, when the U.K.’s Financial Services Authority introduced competition. At that point, LSE started to charge companies to publish announcements, having previously provided the service for free.
Data vendors pay a fee for each RIS, and bundle the feeds for customers, who are prepared to pay a premium for real-time corporate disclosure as they make investment and trading decisions.
The seven RISs are: the RNS; Business Wire; PR Newswire; ONE, owned by Thomson Reuters; News Releases Express, provided by Marketwire; marCo; and DGAP IR, owned by EquityStory AG. Some websites such as Hemscott distribute corporate disclosures from the RISs free of charge, with a delay.
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