Dow Jones Entices Quants, Traders With Machine-Readable News Analytics

News and market data provider Dow Jones announced the rollout of a machine-readable news platform it says can gauge the mood of the marketplace, and enable quantitative analysts, risk managers, and traders to build more accurate trading models off prevailing sentiment.

The platform, dubbed News Analytics by Dow Jones, uses analytics to measure the impact news may have on the market in real-time, the company said. In order to develop the system, Dow Jones said it combined its news content with technology from a number of providers, including Alexandria, Digital Trowel, RavenPack and SemLab.

Dow Jones first launched machine-readable news for institutional traders in 2007. It rolled out a trading tool that could convert news content into actionable data for trading models in 2010. The firm said its latest platform gives users a wider range of options on how to use its content and develop long and short-term models and risk strategies.

In recent years, interest in using unstructured data like sentiment analytics has grown sharply. According to Aite Group, only two percent of the market used such data four years ago, but now 35 percent of all Wall Street firms are exploring it.

"Machine-readable news and news sentiment are established trading tools, but there have been significant leaps forward in the use and sophistication of algo trading and sentiment models, coupled with advances in low-latency news delivery," Dow Jones Financial Markets vice president Rob Passarella said.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio