Business Wire CIO Steve Messick Debunks Myth That Blogs/RSS Are a Satisfactory Substitute for Simultaneous Disclosure

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Business Wire CIO Steve Messick today labelled Sun Microsystem CEO Jonathan Schwartz's recent call to reform Regulation FD "way off base," explaining from a technical perspective why Schwartz' proposed corporate blog/RSS distribution platform does not meet the requirements for fair and simultaneous disclosure.

BusinessWire

BusinessWire

need assurances that the news is sent at precisely the same instant to each and every recipient

    In his blog response posted on Business Wired, Messick documents in layman's terms why Schwartz' suggested combination of corporate blog/RSS or Atom feeds are incapable of ensuring simultaneous, real-time delivery to market participants.

Financial media, analysts, and investors "need assurances that the news is sent at precisely the same instant to each and every recipient," says Messick in spotlighting the shortcomings of Schwartz' prototype delivery platform.

"RSS is an accepted standard of information dissemination and blogs are becoming an acceptable means for corporations to communicate with the public," Messick acknowledges. "However, we do not agree that these are acceptable technologies for fair and simultaneous disclosure of material, market-moving information."

The key drawback is that RSS (standard configuration) is a poll and pull-based Internet service.

"The fundamental flaw in a poll/pull protocol is that it requires the recipient of the information to ask for service--to poll for the content. By default, you cannot insure that all of these 'askers' are going to receive service from the corporate web server simultaneously," notes Messick.

Business Wire, a leader in regulatory disclosure compliance for the past 45 years, created its own Internet-based disclosure platform that also meets international news industry standards (IPTC). The U.S. Patent Office awarded Business Wire a patent in June 2006 for "NX," its proprietary news distribution platform, in recognition of its "simultaneous news distribution capabilities."

"In today's milli-second trading environment, simultaneity is more important than ever for the global financial markets," said Cathy Baron Tamraz, Business Wire's president and chief executive officer. "Creating disparities in access to information represents a major step backwards, and is counter to both the spirit and intent of Regulation FD."

About Business Wire

Business Wire, a Berkshire Hathaway company, is utilized by thousands of member companies and organizations to transmit their full-text news releases, regulatory filings, photos and other multimedia content to journalists, news media, trade publications, institutional and individual investors, financial information services, regulatory authorities, Internet portals, information web sites, business-to-business decision-makers and consumers worldwide. With a news distribution network spanning 150 countries and 45 languages, Business Wire's multi-channel delivery network, has access to some 60 international and national news agency networks throughout the Americas, Europe, Asia, the Middle East and Africa.

The Business Wire news network is powered by its patented NX high-speed data platform and supports XML, XHTML and XBRL code to deliver the most sophisticated news file to enhance news release interactivity, customization and search engine optimization. Business Wire has 30 bureaus in cities including New York, San Francisco, Los Angeles, Chicago, Boston, Miami, Paris, Frankfurt, London, Brussels, Tokyo and Sydney with reciprocal offices throughout the world. Business Wire was founded in 1961 by Chairman Lorry I. Lokey, veteran journalist and public relations executive. Cathy Baron Tamraz is president and CEO.

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Michael Lissauer
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