More real-time news ability in trading and risk software

We've noted before that more firms are exploring ways to incorporate real-time news into their algorithms. Thomson Reuters has recently expanded its machine-readable news offering to include unique real-time news events capability. According to Automated Trader, the firm's NewsScope Event Indices (NEI), developed in conjunction with Andrew Lo's AlphaSimplex Group, will feature the new capability.

NEI offers "real-time indices that measure when abnormally large amounts of news occur in various categories." When the level of news hits various thresholds, customers' trading or risk management systems are alerted. It's unclear whether such real-time automated news analytics will pay off for clients. Customers will be given detailed information that discusses the methodology and historical back testing data that will suggest how well the service may work with given strategies. 

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