Tuesday, 23 September 2014
Last updated 10 hours ago
Apr 30 2007 | 9:47am ET
Big media is getting even bigger, or should we say, wiser. Today, Reuters launched a new “sentiment analysis” service in which computers read the news, judge whether it is positive or negative, and trigger trades based on the results. The service is being marketed to algorithmic traders, including hedge funds.
Reuters claims the system will enable customers to analyze news about thousands of companies before humans can even read the first headline of a newspaper. The information provider has already been offering a product called NewsScope, which allows its clients to use news content to drive automatic trading and respond to market moving events, but according to Peter Moss, who heads Reuters global enterprise solutions group, the new release allows the machines to “interpret the sentiment of news stories as they are published.”
For now, the system will only scan Reuters’ own articles, but there are plans to add additional news sources.
According to Reuters, the new system works by assigning numerical “sentiment scores” to words or phrases which are then processed to give an overall positive, neutral or negative score to the company in the news article. These scores can be added together to calculate the prevailing sentiment for a company, a sector, an index, or even to assess global market sentiment.
“Imagine a machine scanning hundreds of stories on companies’ results, measuring the sentiment around them and incorporating that into algorithmic trading strategies,” said Moss.
Reuters collaborated with U.K.-based linguistics and software developer Corpora to develop the new system.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.