NASDAQ Leverages AI With New Technology Platform For Buy Side Firms

May 16 2017 | 10:14pm ET

NASDAQ has debuted a new technology platform for hedge funds and other buyside firms that applies machine intelligence to proprietary and third-party data sets in search of optimal entry and exit points. 

The new system, named NASDAQ Analytics Hub, provides a suite of back-tested, normalized structured and unstructured data sets and analytics tools to help augment investment strategies, the company said in a statement, and allows for informed adjustments without fundamentally changing underlying strategies, the exchange said in a statement. 

The platform analyzes social media sentiment, central bank communications, retail sentiment, technical factors, and event based signals, NASDAQ added. Advances in technology and automation are increasing the demand for alternative data sets to help asset and hedge fund managers, algorithmic traders and active managers.

“The NASDAQ Analytics Hub reflects our partner-based approach of collaborating with key start-ups – like Lucena Research – to apply machine intelligence on proprietary and third party data sets to create new signals that investors may not have been able to access on their own,” said Terry Wade, Head of Business Development and Product of Global Information Services at NASDAQ, in the statement. 

“We’ve implemented a rigorous process whereby we use machine intelligence to normalize, validate and back-test the data to ensure the resulting outputs translate into multiple real-life investment use cases,” he continued. 

The data sets available today in the new platform include: 

  • PredictWallStreet, which polls millions of retail investors to produce long and short signals with high levels of alpha
  • iSentium, which transforms unstructured social media content into powerful sentiment indicators
  • Prattle, which quantifies the language of central bank and corporate communications creating directly tradable signals
  • Nasdaq Dorsey Wright, which identifies investment ideas by ranking stocks, ETFs and mutual funds from strongest to weakest based on Relative Strength analysis

The company intends to continue to add new data sets and data sources, as well as new insights and analytics on a continual basis over time, the statement said.

Founded in 1971 as the first all-electronic stock exchange, NASDAQ is a leading provider of real-time market data and analytics to financial professionals and retail investors globally.

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