Data vendor and trading technology provider Bloomberg has unveiled new analytics functionality for its BN Direct machine-readable news service.
Machine-readable news applications analyse and quantify news stories so that they can act as automatic triggers for trading software such as algorithms. Bloomberg’s machine-readable feed is delivered to traders using its proprietary B-Pipe format, which the firm claims offers easy integration and lower latency.
Bloomberg’s new functionality includes ratings for Bloomberg-only readership data and story flow.
Bloomberg-only readership data analyses the most read stories by Bloomberg terminal users from its database of over 30,000 news sources globally. According to Bloomberg, users of its terminals include global banks, investment firms and other financial institutions.
Story flow tracks the most written about companies and news topics using the news sources tracked by Bloomberg.
“These news metrics may cause a trader or investor to rethink or alter a strategy or trading approach,” said Stefan Whitney, product manager of BN Direct at Bloomberg, in a statement. “This valuable information, which is derived from Bloomberg’s exhaustive database of news sources and its unique user base, may alert a market participant to a market-moving event. We believe our constituents will benefit from knowing about these spikes of interest in the news.”
Machine-readable news is becoming more prominent in equity execution, particularly because of the rise of high-frequency trading in the US and Europe. At the beginning of the year Thomson Reuters introduced NewsScope Direct, a service that offers high-frequency traders in London and Chicago microsecond delivery of news and economic data before it has a chance to move the market. In November last year, Deutsche Börse acquired Need To Know News, a provider of machine-readable news for trading algorithms.