WASHINGTON, June 15 (Reuters) – The U.S. Labor Department is
delaying introducing new rules tightening security around
publication of potentially market moving economic data after
talks with media organizations.
The department said on Friday that some planned rules for
security at its press room “lock-ups” will take effect in
September, rather than in July as initially planned.
Some government departments provide such data to the media
under rules prohibiting publication before a specified time in a
press room in which communications by computer line or phone are
disconnected, a procedure known as a “lock up”.
The department announced in April it would ban news agencies
from using their own computers, software and communications
lines in the press room where market moving data is distributed
before publication.
But after talks with media organizations in recent weeks,
the department sent an email to media outlets including Reuters
on Friday saying news organizations would be allowed to use
their current equipment until August and then run tests on new
equipment until Sept. 5, when the new rules will take effect.
The e-mail, which included a series of dates for
implementing the department’s new security plan, was signed by
Jennifer Kaplan and Stephen Barr of the Labor Department’s
public affairs unit.
Significant data like the Labor Department’s monthly U.S.
payrolls and unemployment report can move stock, bond and
currency prices in seconds after publication.
Already, the Labor Department controls a master switch
regulating all computer transmissions from its press room. The
switch turns communications off at 8 a.m., before reporters are
given the data, and turns them back on at 8:30 a.m precisely
when the publication embargo is lifted.
Critics have said the original plan to the clamp down on
security increased the possibility that data could be delayed
reaching markets, or might be published more quickly by some
media than others due to bottlenecks in communications lines.
(Reporting by Jason Lange)
