Twitter for trading a 'bad idea'
Peter Hiom, the deputy chief of the Australian Securities Exchange, says he does not like how Twitter is being considered an appropriate mechanism for disclosure in US equities markets.
"We frankly think [it] is a terrible idea," he told the Stockbrokers Association on Thursday.
Mr Hiom said traders were building "incredibly sophisticated" algorithms that could scan huge amounts of data, including Twitter feeds, before executing trades.
So if companies are allowed to use Twitter to disclose price-sensitive information then there will be a "huge onus" on listed companies to make sure information on Twitter is correct.
"I think that's going into a whole world of difficulty," he said.
Paul Hilgers, the head of Optiver Asia Pacific - one of Australia's biggest high-speed trading companies - said some trading firms were now using "microwave" set-ups to transmit information directly from wire news services into their trading strategies.