Contrary to popular belief, embargos help level the playing field.
Instead of releasing speeches to a locked room of journalists an hour beforehand and then publishing simultaneously, the ECB will now publish speeches on its website and headlines will go up as reporters read through the text.
In theory, it's a more transparent way of operating. The change was made because the ECB was having a difficult time vetting journalists. The timing of the announcement also suggests the Coeure imbroglio may have been a factor.
In practice, this will change how ECB news is traded on. Firms will build software to scrape ECB speeches and flash the important parts to traders in grey box systems. Some might even dare to build black boxes if key phrases like Trichet's 'vigilance' return. It means that location to the ECB's servers becomes paramount in the micro-second sprint.
Finally, it will certainly add confusion as traders scramble to interpret and react in thin markets.
In short: It's a whole new ball game.
Stop the dictatorship!
