Communication is clearly the life blood of any trading organisation, you only have to ask anyone in the city to realise this. They need to have their finger on the pulse and their ear to the ground in order to get a lead or a jump on the market before everyone else. This information tends to come from a great deal of sources, including mediums such as press releases, business statements, cable news channels and many more. However, because the world of finance often moves faster than a speeding bullet, traders need to get the latest information from a wide variety of sources, and they need it now. The phenomenon that is Twitter is now being adopted by city traders according to National Austalia Bank (NAB), as a means of staying connected to those in the know.
Twitter, which is known as a micro-blogging site, allows users to update their profiles with posts of a maximum 160 characters. This keeps the ‘tweets’ short and concise, “which is what traders like” says Henry Allan of the London Lite Trading Group. Users within a certain niche, such as the obstruction light sector, can follow other Twitter members who they want to receive updates from, and can themselves be followed. The financial sector operates in a global market these days and people need to be able to stay in touch with lots of different people who are in different countries and different time zones. This is made possible via Twitter, which allows various information and media outlets to communicate and feed off each other, often supplying information as it develops and without bias.
There have been some groups that have frowned upon the use of Twitter as they say it has potential to be a portal for insider trading as messages can be sent privately. Although supporters such as this cable ties business are quick to point out that this was always possible via email and the real power comes from the ability to alert hundreds of thousands of people publically, which of course can be monitored for underhanded dealings if necessary
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This post was written by Robjohn on July 21, 2009



