Algorithmic traders are now able to rely upon more than just price data for populating their models after Reuters launched two products that allow its news output to be “read” for the purposes of automated trading. Both are designed to enable computers to recognise and process key items of information in Reuters news stories, allowing customers to incorporate news into their automated trading strategies.
Reuters NewsScope Real-time lets Reuters clients use live news content to drive automated trading and respond to market-moving events as they occur. Each news item is “meta tagged” electronically to identify sectors, individual companies, stories or specific items of data to assist automated trading.
This product is backed up by Reuters NewsScope Archive, which lets customers replay stories as they unfolded in the market, allowing them to back-test or fine tune their trading strategies in response. Once linked with Reuters tick history – an archive of tick-by-tick price data – clients will be able to accurately map historic price movements against the news stories that generated them.
Tom Glocer, Reuters’ chief executive officer, says: “For the first time Reuters is enabling customers to leverage the strength of our global news service to power automated trading. The globalisation and complexity of financial markets are driving greater use of computers to execute trading strategies. Our clients are incorporating news into their automated trading strategies and our latest offerings can help them find undiscovered value.”