President Trump has had a problem in his second term: His social-media app, Truth Social, allows high-frequency traders on Wall Street to cash in when he makes announcements that move markets. But Truth Social, which makes a pittance in ad revenue, isn’t benefiting financially from Trump’s volatile missives on tariffs or the war in Iran.
Trump Media & Technology Group, which owns Truth Social, seems to have found a solution. The Financial Times reported that the company has been in talks with traders and investors for a new kind of first-look deal. These financial institutions would pay up to $100,000 per month to see Trump’s posts before the public. Fractions of a second matter for high-frequency traders, who can make more money if they get there first, and hedge funds would essentially be forced into paying the fee. “If you’re behind on that news, you’ll get crushed,” one hedge-fund executive told the FT.
Do not sob for the hedgies. Not only can Wall Street firms afford a six-figure monthly sub but early access could net them hundreds of thousands on major trades using the information, per CNBC. And in his second term, Trump has proven time and again that his Truth Social posts can move the market or individual stocks: United States Steel, Intel, etc.
