From a treasurer s point of view, the outcome is a highly efficient work process resulting in lower operating costs. Dissemination Electronic news dissemination provides an efficient, timely means of transferring information. To address the effects of electronic news dissemination on capital markets and the subsequent concerns of the corporate treasurer, several questions must be taken into consideration. Electronic news dissemination is fast and efficient. The information conveyed is incorporated into financial market prices immediately.
Financial markets operate at equilibrium, with few arbitrage opportunities present.
These news releases do spur an initial price reaction, however, markets quickly return to equilibrium. The time period it takes to reach equilibrium after this reaction is typically less than one minute. It is for this reason, that even with a keen sense of how the market will react to the news release, it is highly unlikely that even the best trader could take advantage of arbitrage opportunities resulting from an electronic news release. The impact of a news vehicle that quickly reaches the masses is profound. Although opinions differ in this regard, it should be noted that electronic media dissemination in and of itself, is not responsible for market volatility.