Banking Turmoil

Stock Clearinghouse Leaked Sensitive Data, Trading Firm Says

Traders worry Depository Trust & Clearing Corp. data feeds could reveal when large investors are buying or selling stocks, a charge DTCC rejects

The Depository Trust & Clearing Corp., a stock clearinghouse, also has a side business selling data. Photo: CHRIS HELGREN/REUTERS

The clearinghouse that processes U.S. stock trades is selling data that sophisticated traders can use to profit at the expense of more traditional investors, according to a report from an institutional brokerage firm.

The Depository Trust & Clearing Corp. is “leaking sensitive trading data” via two little-known data feeds, brokerage Themis Trading said in the report, which it circulated to clients earlier this week.

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