A federal judge just banned Theflyonthewall.com from reporting on Wall Street research reports prior to 10 a.m. For reports issued during the trading day, The Fly will be barred from using the research for two hours after it is released.
The opinion (see below) describes financial research as a public good that is endangered by “systematic misappropriation” by The Fly. The Fly’s lawyers say they plan to appeal the decision.
The banks had asked for a bar on publishing their research before 12 noon.
Here’s how Reuters looks at the broader impact of the decision:
Like many rivals, Theflyonthewall.com typically posts headlines from research reports and press releases, and longer summaries when available.
It was not immediately clear how the 89-page ruling might affect the ability of real-time financial news providers such as Thomson Reuters, Bloomberg LP and Dow Jones Newswires to tell clients of potentially market-moving research.
Thomson Reuters spokeswoman Erin Kurtz and Bloomberg spokeswoman Judith Czelusniak declined to comment. A Dow Jones representative had no immediate comment.