Nasdaq Debuts ‘Alt’ Data Feeds
Exchange operator dips its toe into sentiment and AI-based analysis.
Global exchange operator Nasdaq launched its Nasdaq Analytics Hub in conjunction with three third-party alternative data providers.
Nasdaq has spent the past six weeks beta testing enriched data feeds from iSentium, Prattle, PredictWallStreet, and Nasdaq Dorsey Wright with hedge funds predominately, according to Terry Wade, senior vice president and head of business development and product, Global Information Services at Nasdaq.
“We’ve worked with them to validate the value of the data sets and analyze additional use cases over and above what even the data providers themselves were using for the data in some cases,” he told Markets Media.
As part of the validation process, Nasdaq has partnered with Lucena Research to use the vendor’s machine learning-based quantitative analysis platform to validate characteristics, coverage, and the signal frequency of the new data feeds, according to Tucker Balch, co-founder and CTO of Lucena.
Nasdaq plans to offer direct à la carte pricing for the data feeds, which are available through APIs and GUIs.
“We are flexible regarding the way we deliver it,” said Wade. “Some are more receptive to delivery via a GUI or API. Some of them are end-of-day feeds and that sort of thing. So it’s sort of whatever the client wants, and whatever we need we will deliver to clients.”
“iSentium provides a data product around social media sentiment,” explained Wade. “It mines the raw Twitter feed and other social media content to provide a robust analysis of the sentiment that is driving equity performance in the marketplace.”
Prattle uses natural language processing to parse statements from the ten of the largest central banks for their level of hawkishness or dovishness, he added.
PredictWallStreet aggregates retail investor sentiment, which it sources from online surveys it posts to retail investment websites and compares it to previously collected data while Dorsey Wright provides research, investment strategies, and indices.
Nasdaq intends to bring additional data sets to its platform, according to Wade. “We expect to have tens, if not hundreds, of data sets available the analytics hub. You’ll see a substantial increase in between now and the end of the year.”
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