Thomson Reuters Launches News Analytics for Trading and Risk Management

Thomson Reuters has expanded its machine-readable news offering to include unique real-time analysis on key news events, which has the capacity to help predict market volatility and returns. NewsScope Event Indices (NEI) has been developed in conjunction with AlphaSimplex Group and will enable clients to more easily incorporate news into their trading and risk management strategies.

NewsScope Event Indices, which have been shown to predict returns and volatility in the major asset classes, are targeted at hedge funds and investment banks pursuing quantitative driven investment and trading strategies. The indices will be a key capability within the Thomson Reuters Quantitative and Event Driven Trading solution portfolio which offers the financial community comprehensive historical archive and real-time content sets together with analytical tools for quantitative investment strategies.

NEI works by creating real-time indices, which measure when abnormally large amounts of news occur in various categories. When the level of news in these categories reaches a certain threshold, a signal is sent to a customer's trading or risk management system alerting them to potential market movements. Clients will have access to detailed whitepapers which discuss the research methodology and historical data that test the applicability of the indices for their trading strategies and risk management systems.

"The launch of NewsScope Event Indices reflects our continued desire to look for opportunities to innovate around our core strength as a leading global news and financial data provider and help our customers extract greater value from our content. Our collaboration with AlphaSimplex enables us to deliver the actionable information that can help them more intelligently incorporate the impact of news and events into their trading and risk strategies," said Mike Powell, global head of enterprise information, Thomson Reuters, in a press release.