April 22, 2009

Psydex, a provider of services that search and analyze news in real time, has launched its new Psyng portal for news alerting.

Psyng searches newswires, online feeds, TV closed captions, blogs and social networks such as Twitter to find statistical patterns and trends and then alerts users.

Rob Usey, co-founder and CEO of Psydex, says this type of news alert mechanism is particularly useful for traders. “If they’re executing and moving airline stocks and a crash occurs they want to know about it faster than anyone else as there is possible impending volatility they might want to stop or pause the order.”

Psyng uses combinations of words and phrases to more than 50,000 of its “Topic” conversations across thousands of sources and when chatter or instances rise above typical levels, an alert is triggered.

The portal lets users create indices or groups of topics around sectors or companies they are interested in. “When mentions around those topics are a certain deviation above the mean the color system changes,” says Usey. “Green is at or below normal chatter level for a topic while red is typically four plus standard deviation above the mean.”

Usey says that proprietary and sales traders can benefit from this type of news alert portal as it is a good way to provide the most up to date information to clients. “They like the idea that they can tell clients before anyone else,” he adds.

Each news source has a weighting, which can be changed by the individual user. The social media sources, such as Twitter, are weighted lower while the AP and Business Wire media sources would have a higher weight.

“We’re still trying to figure out in the Twitter-sphere who are the intelligent observers and who is out there that is going to recognize something and report on it,” say Usey. “The information doesn’t matter to a trader if they can’t do anything with it.”

Usey says the aim of the Psyng portal is to help traders to get news and act on it faster than traditional news sources. “You go onto a trading floor and say they’re reading news on Bloomberg they can’t possibly respond to that and take the necessary actions fast enough – seconds turn into minutes,” he says. “But if a trader can take that time frame down and hedge or do what needs to be done that is an advantage.”

The news sources Psyng monitors include include AP, Business Wire, Dow Jones, Thomson Reuters and more. Psydex also provides custom data feeds and subscription-based Psyng services.

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