Thomson Reuters says it's beefing up its machine-readable news service with social media-based sentiment analysis, an innovation the firm contends will help traders and investment firms enhance their overall strategies.
The news and market data provider said that in order to capture prevailing sentiment, its platform mines the expansive world of social media and blog content, and converts that information into digestible analytics on selected companies and market segments. Thomson Reuters News Analytics will provide access to up to 50,000 news sites and four million social media sites, the idea being that users can quickly sift through the noise to better interpret the mountain of data available on the Internet.
"This launch will give investors additional capabilities to gauge stock, sector and market sentiment, and to translate these emerging sources of market insight into data that can be incorporated into both quantitative strategies, and as a broader context to human analysts," said Rich Brown, the head of quantitative and event-driven trading solutions at Thomson Reuters.
The move comes as the social of social media expands beyond personal use into a tool that's increasingly being used throughout the financial services industry, the firm added.