If data is the new oil, then how trading firms “drill” it in order to generate alpha becomes increasingly important. Galen Stops reports.
So often has the phrase been used recently that it’s in danger of becoming something of a cliché but, apparently, data is the new oil.
To see evidence of this, look no further than the technology giants that have emerged out of Silicon Valley. Yes, Facebook doesn’t charge users money for the social media platform it provides, but is it free? Arguably, users “pay” with the data that they create via their interactions on the platform, which Facebook is then free to use and sell to generate profits.