At least five high-frequency trading firms have signed on! Read this in one article: How does Trump turn his tweets into business?
[At least five high-frequency trading companies have signed up! Read this in one article: How does Trump turn his tweets into business? 】TruthSocial, the social media platform controlled by U.S. President Trump’s family, is planning to sell ultra-fast access to its platform posts to stock market traders. And many Wall Street institutions are now following suit.
Truth Social, the social media platform controlled by U.S. President Trump’s family, is planning to sell ultra-fast access to its platform posts to stock market traders. And many Wall Street institutions are now following suit. The new product "Truth API" launched by Trump Media & Technology will allow outsiders to pay to obtain the president's tweets faster. The company plans to charge $100,000 per month, with the monthly fee reduced to $60,000 if traders sign multi-year contracts, according to people familiar with the matter. Of course, the fee remains out of reach for many ordinary traders who closely follow the president’s social media feeds. But obviously, many high-frequency trading companies in the industry are showing strong interest in this. Traders said many large investment firms, before Trump launched his fee plan, had developed automated systems to monitor Truth Social, detect important keywords and take action - such as opening or closing positions, often in less than a second. Trump’s tweets have repeatedly disturbed the market Industry analysis of trading data shows that some traders follow up on Trump's online remarks at an alarming rate. Last month, investors traded more than 2 million shares within a minute of Trump's two posts about Iran, according to DTN data. The trades caused share price swings of more than 2% for nearly two dozen energy and industrial stocks. At 1:28 pm local time on June 9, Trump posted that Iran had shot down an Apache helicopter patrolling the Strait of Hormuz, and emphasized that "out of necessity, the United States must respond to such attacks." Trading data retrieved from the industry showed that energy stock trading volume exploded almost instantly, driving up stock prices. However, just two days later, the president posted again that he had decided to cancel the military strike originally scheduled for that night in view of the progress in negotiations with Iran. He also hinted that the two sides are expected to reach a long-term peace agreement, and wrote, "The time and place of the signing will be announced soon." This time, the market's immediate reaction directly caused energy and defense concept stocks to dive across the board. According to people familiar with the matter, Trump Media Technology Group Chief Technology Officer Vladimir Novachki, Chief Revenue Officer Paul Bremer and Director of Strategic Initiatives Mattheus Wagner have been promoting this paid data interface to major trading institutions. This data source will cover the dynamics of the platform’s top accounts. Among them, Trump himself has about 13 million fans, ranking first; and his sons and Vice President Vance also have a huge following group. At least five high-frequency trading firms have signed on According to people familiar with the matter, at least five high-frequency trading institutions are among the companies that have signed contracts. This type of institution is good at taking advantage of extremely short-lived small differences in asset prices to arbitrage, and therefore relies heavily on response speed. In this industry, getting data a few nanoseconds ahead of your competitors can mean a huge competitive advantage—and one nanosecond is just the time it takes for light to travel about one foot. In order to seize the opportunity, high-frequency trading institutions often make strange moves. For example, deploy servers directly next door to the data centers of Nasdaq or the New York Stock Exchange. Eric Budish, a professor at the University of Chicago Booth School of Business who studies high-frequency trading, pointed out that some companies even set up servers near Washington, D.C., so that when the government releases important economic data, the signal can be received at the shortest distance. The current purchase of ultra-fast data interfaces has become another weapon for them to get ahead. Joe Saluzzi, co-founder and partner of brokerage Themis Trading, explained: Suppose an institution has placed a buy order for oil futures. If it receives Trump's post saying "The Iran War is over" through the high-speed interface for the first time, it can instantly cancel the buy order and go short oil before other investors even see the post. "What they pursue is extreme speed, and they have built a huge technical system for this." Saluzzi added, "And this extremely fast interface just fills in the missing piece of the previous puzzle."
Although compared to the early days of Trump's term, Wall Street's reaction to his social media comments has become more rational - at that time, his shift in tariff policy directly pushed up the Nasdaq Composite Index, which is dominated by technology stocks, soaring by 12% in a single day. However, fast movers can still use their speed to profit handsomely from the movements in individual stocks and the broader market that they trigger. Some trading institutions have even deployed special programs to scan his activities, focusing on grabbing specific company names or fixed sentences such as "Thank you for your attention to this matter" that may contain heavy signals. Other sensitive words include "ceasefire" or "Iran". Some institutions have even introduced AI agents to instantly assess the potential impact of their remarks on the market. Some traders admitted that this extremely fast Truth Social data interface is likely to become a "rigorously needed" infrastructure for the industry, and major institutions will have to pay the price in order not to fall behind. David Boole, managing director of options brokerage BayCrest, pointed out, "This has become a defensive cost expenditure, not even a unique skill to obtain excess returns." And while many retail investors also want to take action based on Trump's social media posts - there's even a forum on Reddit devoted to the topic. But the reaction speed of these ordinary traders is far slower than that of fast-reacting algorithms. "Retail investors simply didn't react fast enough to have a real impact," Boole said.
Although compared to the early days of Trump's term, Wall Street's reaction to his social media comments has become more rational - at that time, his shift in tariff policy directly pushed up the Nasdaq Composite Index, which is dominated by technology stocks, soaring by 12% in a single day. However, fast movers can still use their speed to profit handsomely from the movements in individual stocks and the broader market that they trigger. Some trading institutions have even deployed special programs to scan his activities, focusing on grabbing specific company names or fixed sentences such as "Thank you for your attention to this matter" that may contain heavy signals. Other sensitive words include "ceasefire" or "Iran". Some institutions have even introduced AI agents to instantly assess the potential impact of their remarks on the market. Some traders admitted that this extremely fast Truth Social data interface is likely to become a "rigorously needed" infrastructure for the industry, and major institutions will have to pay the price in order not to fall behind. David Boole, managing director of options brokerage BayCrest, pointed out, "This has become a defensive cost expenditure, not even a unique skill to obtain excess returns." And while many retail investors also want to take action based on Trump's social media posts - there's even a forum on Reddit devoted to the topic. But the reaction speed of these ordinary traders is far slower than that of fast-reacting algorithms. "Retail investors simply didn't react fast enough to have a real impact," Boole said.