Traders are dealing with more data than ever before in their pursuit of alpha. Through the use of AI, machine learning and natural language processing, how are advances in trading technologies from Refinitiv helping to ease the burden?
- Evolving trading technologies reduce the burden of activities such as data retrieval, meaning buy-side and sell-side traders focus more on what the information is telling them.
- AI, machine learning and natural language processing create simplified workflows which enable quicker and better decision-making.
- Advances in trading technologies from Refinitiv are helping to bring alpha-generating ideas to end users in an actionable format.
Ever since shares were exchanged at London coffee houses or under a Buttonwood tree in downtown Manhattan, trading has been evolving.
These advances have included physical or auction-style trading, electronic posting of bids and offers, and the decimalization of stocks, all the way through to today’s market electronification.
Adapting to these changes means buy-side traders are having to wear many hats and look across multiple asset classes and at more data. For the sell-side it means covering more accounts.
So, how is it possible to handle more data and look across more asset classes — all while providing more alpha for their portfolio manager, client, or firm?
The answer is through advances in trading technologies.
Advances in trading technologies
Traders are very good at sourcing and filtering out relevant information, but in the end, they are humans, and their capacity only goes so far.
At Refinitiv, we feel that trading technologies should play a critical role in enhancing human capabilities, and act as an extension of the trader.
We believe that technology has evolved to the point where it can lift the burden off the trader for activities such as data retrieval and help them focus more on the understanding of what the information is trying to tell them.
Watch: Phil DeFrancesco discusses data’s impact on trading (Part 1)
Using AI, machine learning and natural language processing, we are creating simplified workflows with the intention of increasing efficiency of that end user.
Alpha generating ideas
Humans and computers become much more powerful when they work together, so our focus is on helping people make quicker, better decisions rather than simulating human consciousness.
Our Smart Desktop solutions bring alpha generating ideas to our end users in an actionable format.
Being notified of outsized price movements, understanding why that stock is moving, and then knowing who to tell and what to do with this information is a great example of how technology can play a critical part in the investment process.
Beyond the trading desktop, we are also making these solutions available as a microservice or API. This will allow users to pull data into their own infrastructure, giving them even more flexibility over how and where they want to capture this information.
Watch: Phil DeFrancesco discusses data’s impact on trading (Part 2)
At Refinitiv, we are striving to be at the forefront of these type of solutions, especially as we leverage our unparalleled breadth of news and data that cannot be matched by any of our competitors.