Dow Jones & Co. introduced Tuesday a new product called News Analytics, which is designed to help traders, quantitative analysts and risk managers build better, more predictable trading models based on news sentiment.
News sentiment analytics quantify the impact of market-moving news, in real time or coupled with historical news models.
News Analytics combines Dow Jones’ business news content with technology from Alexandria, Digital Trowel, RavenPack and SemLab. Dow Jones has created a series of options to suit a wide range of content, technology and analysis preferences in the market and best support the development of clients’ long- and short-term models and risk strategies.
“Machine-readable news and news sentiment are established trading tools, but there have been significant leaps forward in the use and the sophistication of algo trading and sentiment models, coupled with advances in low-latency news delivery,” said Rob Passarella, vice president, Dow Jones Financial Markets, in a statement. “Given the interest we have seen from clients in our elementized news and news sentiment products, we developed integrated product and technology solutions that cover the gamut of trading models and delivery options.”
Dow Jones launched the first machine-readable news feed for institutional traders, the Elementized News Feed, in 2007, and the first trading tool to convert news content into actionable data for trading models, Lexicon, in 2010.
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