In an age when information manages to twitter, feed, widget and worm its way onto our desktops, one business information provider is continuing its focus on news for machine, not man.
Thomson Reuters has extended it machine-readable news offering to include a sentiment scoring service for the commodity and energy markets.
Reuters NewsScope Sentiment Engine (RNSE) allows the measurement of news sentiment for thousands of companies, in real time. Powered by linguistics technology, RNSE determines whether news is positive, negative or neutral, enabling the monitoring of sentiment, benchmark companies or enhance programmatic applications.
The expanded service utilizes a new linguistic model that has been developed specifically for commodity market and scores sentiment in milliseconds for news on 40 commodity and energy assets in addition to over 10,000 companies supported in the current offering.
The scores produced can be used by trading desks and quantitative research analysts to better model the movement of asset prices. Clients have access to historical data dating back to 2003, which allows them to back-test the systems applicability for their trading and investment strategies.
Algorithmic trading has been widely adopted by both the sell and buy-side market participants in the cash equity markets, but is now increasingly spreading to other liquid asset classes such as foreign exchange, commodities and energy markets. According to a Thomson Reuters statement, the enhancement was made in direct response to client demand and the global growth of event driven trading strategies within the commodities market.
Mike Powell, Global Head of Enterprise Information, Thomson Reuters, commented: Commodity markets offer significant opportunities for institutional investors and proprietary traders to grow and diversify their investment strategies. Given the growth of the global commodities and energy markets, price volatility and increased adoption of this asset class into active trading strategies we are seeing customer demand for relevant quantitative solutions. The launch of this new module in RNSE draws on Thomson Reuters expertise in the commodity and energy markets as well as our commitment to deliver innovative solutions to our clients.
Giles TurnerNews Editor