Twitter has created an entirely new Wall Street ecosystem — here are the companies leading the way

Traders are turning to Twitter to get in front of big market-moving trends.

That in turn is creating an eco-system of companies looking to make sense of Twitter data and pull the signal from the noise.

According to a TABB Group report issued last week, the industry is growing at a rapid pace.

“There’s not going to be one firm on top,” said TABB’s Valerie Bogard, a research analyst. “There’s going to be multiple firms.”

Some of the startups have already been snapped up by bigger corporates looking to get an early edge on analytics.

Twitter itself spent upwards of $US130 million just a year ago to buy Gnip, now used to help disseminate data to startups that in turn relay that information to hedge funds, among other clients.

Elaine Ellis, a marketing manager at Gnip, told Business Insider that Twitter also sells data to banks and hedge funds directly.

She said: “We know Tweets move markets. Our public, real-time nature positions us perfectly to be a source for the financial industry. We believe that in the future, this will evolve from a nice to have to a must have for all industry participants.”

Bogard told Business Insider that everyone from investors in munis to traditional funds with long-only strategies are trying to turn real-time commentary into critical analysis ahead of the tape.

Not all social signals are created equal, of course. In fact, some are created to throw Wall Street’s brightest minds off the scent of what’s actually happening.

Here are some of the startups looking to turn Tweets into trading signals:

Read more at https://www.businessinsider.com.au/twitter-has-created-an-entirely-new-wall-street-ecosystem-here-are-the-companies-leading-the-way-2015-9#sVb0y2uxVcEudKxk.99

Twitter has created an entirely new Wall Street ecosystem — here are the companies leading the way

Traders are turning to Twitter to get in front of big market-moving trends.

That in turn is creating an eco-system of companies looking to make sense of Twitter data and pull the signal from the noise.

According to a TABB Group report issued last week, the industry is growing at a rapid pace.

“There’s not going to be one firm on top,” said TABB’s Valerie Bogard, a research analyst. “There’s going to be multiple firms.”

Some of the startups have already been snapped up by bigger corporates looking to get an early edge on analytics.

Twitter itself spent upwards of $US130 million just a year ago to buy Gnip, now used to help disseminate data to startups that in turn relay that information to hedge funds, among other clients.

Elaine Ellis, a marketing manager at Gnip, told Business Insider that Twitter also sells data to banks and hedge funds directly.

She said: “We know Tweets move markets. Our public, real-time nature positions us perfectly to be a source for the financial industry. We believe that in the future, this will evolve from a nice to have to a must have for all industry participants.”

Bogard told Business Insider that everyone from investors in munis to traditional funds with long-only strategies are trying to turn real-time commentary into critical analysis ahead of the tape.

Not all social signals are created equal, of course. In fact, some are created to throw Wall Street’s brightest minds off the scent of what’s actually happening.

Here are some of the startups looking to turn Tweets into trading signals:

iSentium has backing from Goldman Sachs alums

iSentium

From iSentium’s site: ‘The sentiment bars (green and red bars) in the chart represent iSENTIUM’s Sentiment Strength Indicator or SSI which is a hybrid of the Relative Strength Index (RSI) modified using iSENTIUM’s patented sentiment scores in place of price.’iSentium is one of the older players in the social sifting game. That’s part of the reason it’s already profitable, having raised cash from Goldman alum David Heller and Marc Spilker, former president at Apollo Global.

The Miami-based startup is even working with a yet-unnamed investment bank to launch a Twitter sentiment ETF product, although CEO Gautham Sastri says it won’t launch until next year, thanks to regulatory approval issues. He says social analytics is here to stay on Wall Street. ‘If you don’t look at social media, you’re blind,’ he told Business Insider.

Read more at https://www.businessinsider.com.au/twitter-has-created-an-entirely-new-wall-street-ecosystem-here-are-the-companies-leading-the-way-2015-9#sVb0y2uxVcEudKxk.99

Click Here to Leave a Comment Below

Leave a Reply: