Reuters is attempting to take news-driven trading to a new level by tagging news items so that they can be read by computers and fed into automated trading programmes.
Reuters NewsScope Real-time will let Reuters clients use Reuters 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.
Reuters NewsScope Archive, on the other hand, will let 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.
“For the first time Reuters is enabling customers to leverage the strength of our global news service to power automated trading,” says Tom Glocer, Reuters Chief Executive Officer. “The globalization 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.”
Peter Moss, Global Head of Reuters Enterprise Division, says the firm is aware of demand from clients to use Reuters news “to give an added dimension to their automated trading.”