Why are Wall Street firms paying up to $100,000 a month for faster access to Trump’s Truth Social posts? Any specific goal? | Today’s news
Wall Street trading firms and financial data providers are paying up to $100,000 a month for faster access to US President Donald Trump’s posts on Truth Social. The move is said to be aimed at getting a head start on financial markets where Trump’s statements may trigger moves.
Truth Social, the social media platform founded by Trump, has signed Bloomberg, Susquehanna International Group and Jump Trading for its Truth API service, Reuters reported, citing sources.
What is Truth Social’s API Service
The API allows subscribers to receive Trump’s posts faster than anyone else could by manually checking the platform.
The service is said to provide subscribers with a time advantage. According to Trump Media officials, he is reportedly ahead by 50 milliseconds. This difference may seem insignificant, but it can matter to high-frequency trading firms, especially those that rely on algorithmic and automated strategies to react to market movement.
Why business firms are ready to pay for it
These firms use software that receives news headlines, company announcements and government statements, analyzes the information and can execute trades, all within thousandths of a second, according to the news agency. Quicker access to Trump’s posts could potentially help them react earlier than others in the market, including investors.
Trump’s statements on social media have moved the markets from time to time. Oil futures fell after Truth Social announced a ceasefire in the Iran war in April.
Trump Media and Technology Group announced the fastest available product in July. In August, the company told investors it had “signed more than 10 customer agreements,” which neither Reuters nor Live Mint could confirm.
Trump Media said the customers were primarily Wall Street business firms, reportedly paying $60,000 to $100,000 each month.
Why the service is controversial for Trump
What makes the deal even more significant is that it is the first time a firm associated with a sitting president has sold access to his statements. It has also raised ethical and legal concerns for some people on the Internet.
Democratic senators Elizabeth Warren and Adam Schiff in July asked the US Securities and Exchange Commission to investigate whether the service violated securities laws, calling it a “shocking abuse” of the president’s office for personal gain.
Trump Media said, according to Reuters: “Truth Social offers a standard API product that is in significant demand across industries. We take customer privacy seriously. These reports are based on misleading information spread by anonymous sources that is designed to harm our company, customers and shareholders.”
The company is also facing a lawsuit from Intercept Media and the Freedom of the Press Foundation. They argue that charging for faster access to government information would violate the public’s First and Fifth Amendment rights.
