Thomson Reuters launches key news analytics for trading and risk management

With the aim of helping to predict market volatility and returns, Thomson Reuters has expanded its machine-readable news offering to include real-time analysis on key news events.

NewsScope Event Indices (NEI) are targeted at hedge funds and investment banks pursuing quantitative driven investment and trading strategies.

The indices will be a key capability within the Thomson Reuters Quantitative and Event Driven Trading solution portfolio which offers the financial community comprehensive historical archive and real-time content sets together with analytical tools for quantitative investment strategies.

NEI, developed in conjunction with AlphaSimplex Group works by creating real-time indices which measure when abnormally large amounts of news occur in various categories.

When the level of news in these categories reaches a certain threshold, a signal is sent to a customer's trading or risk management system alerting them to potential market movements.

Clients will have access to detailed whitepapers which discuss the research methodology and historical data that test the applicability of the indices for their trading strategies and risk management systems, Thomson Reuters said in a release. Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio