19 October 2017
visit www.avoka.com

Capital markets participants bullish on social media data

26 July 2013  |  5465 views  |  0 Hourly Markets

In a poll of 50 buy- and sell-side professional conducted by OneMarketData, more than half viewed social media data as a good opportunity to capture alpha on a daily basis.

Yet despite the bullish sentiment, only 18% of respondents say they are using social media data today. However, another 35% say they are currently researching how to incorporate social media into their trading and investment strategies.

The survey was conducted in the wake of the AP Twitter hack that occurred on 23 April. That event revealed potential weaknesses in social media's usability to feed trading and investment strategies, but it also demonstrated the impact the new form of data already is having on financial markets.

While 75%t of respondents said they thought social media could add value to both historical trend and near real-time analysis, 46% said their firms would not be using or investing in the use of social media in 2013. The biggest obstacle to a broader industry adoption of social media usage is its potential for false positive signals, according to 62% of respondents.

Louis Lovas, director of solutions at OneMarketData, says: "As social media data continues to gain validation in the industry, demand for solutions that can harness the power and reduce the risk of this new data source will also grow. As we hit that point, our view is that social media will prove to upend the way market participants use information to trigger trading and investment decisions."
KeywordsSOCIAL MEDIA

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Social media spending by banks plateaus as interest wanes

Social media spending by banks plateaus as interest wanes

29 May 2013  |  7501 views  |  5 comments | 17 tweets | 6 linkedin
Central banks wary of social media

Central banks wary of social media

13 May 2013  |  8105 views  |  1 comments | 13 tweets | 1 linkedin
AP Twitter hack sparks share sell off

AP Twitter hack sparks share sell off

24 April 2013  |  5235 views  |  0 comments | 1 tweets | 2 linkedin
Bloomberg adds real-time tweet stream to market data desktop

Bloomberg adds real-time tweet stream to market data desktop

04 April 2013  |  9743 views  |  0 comments | 17 tweets | 6 linkedin
SEC greenlights use of social media for company news

SEC greenlights use of social media for company news

03 April 2013  |  6800 views  |  0 comments | 6 tweets | 4 linkedin
SEC moves to clarify social media rules

SEC moves to clarify social media rules

18 March 2013  |  7409 views  |  0 comments | 5 tweets | 4 linkedin
Nyse Technologies turns on social media hosepipe

Nyse Technologies turns on social media hosepipe

14 February 2013  |  6759 views  |  0 comments | 3 tweets | 2 linkedin
Twitter chatter influences stock prices - survey

Twitter chatter influences stock prices - survey

13 February 2013  |  11969 views  |  1 comments | 16 tweets | 8 linkedin
Start-up pitches social media analysis tool to traders

Start-up pitches social media analysis tool to traders

13 November 2012  |  6844 views  |  0 comments | 7 tweets | 5 linkedin
I Robot: Thomson Reuters adds psych analysis to machine-readable news

I Robot: Thomson Reuters adds psych analysis to machine-readable news

25 June 2012  |  10099 views  |  0 comments
StreamBase partners Gnip to integrate social data in CEP platform

StreamBase partners Gnip to integrate social data in CEP platform

19 June 2012  |  4468 views  |  0 comments
Is it possible to make money out of social media?

Is it possible to make money out of social media?

30 March 2012  |  6301 views  |  0 comments
Thomson Reuters launches social media sentiment analysis service

Thomson Reuters launches social media sentiment analysis service

07 March 2012  |  9752 views  |  0 comments
Reuters opens social media hub

Reuters opens social media hub

03 February 2012  |  7399 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15666 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8829 views comments | 16 tweets | 22 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7930 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7062 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6191 views comments | 6 tweets | 3 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job