Reuters has begun selling a service that allows people to buy and sell stocks based on news events, according to a New York Times story.
Jeremy Peters wrote, “They will give subscribers the ability to mine past and present Reuters news articles in real time and automatically buy, sell or hold a stock based on market-moving events.
“The mining and sifting of news take place in computers dedicated to algorithmic trading; that is, automatic buying and selling based on complex mathematical formulas that aim to pick the optimal time to trade a stock.
“Although algorithmic trading on news events already exists, Reuters says its system is the most advanced. ‘;If an event breaks somewhere in the world, you want to be able to respond to that, or manage the event risks,’ said Richard W. Brown, business manager for Reuters NewsScope, as the new program is being called. ‘At a very simplistic level itâ€™s about speed.'”
Read more here. Business journalists can now say that they do move the market.Â