Capital markets data analytics company Mosaic Smart Data is exploring the potential for applying machine-learning models developed and used by the European Space Agency to financial markets.
The commercial arms of the ESA is giving Mosaic Smart Data access to two sets of algorithms used for monitoring and analysing tens of thousands of instruments on satellites in deep space missions to catch things going wrong before they do serious damage.
The algorithms use ‘semi-supervised’ machine learning to “mimic the effect of having somebody looking every day at every parameter and noticing if something new is happening”.
Mosaic believes the suite of machine learning tools used by space engineers could provide new ways to improve markets surveillance and potentially automate hedging strategies.
In the initial phase of the collaboration, brought about through a zero-equity programme, Mosaic will complete a joint-funded feasibility study to explore how the technology can benefit financial market participants.
Matthew Hodgson, CEO of Mosaic Smart Data, said: "Through this collaboration we have an incredible opportunity to apply some of the world's most advanced data analytics models to the problems our clients face in financial markets. Not only that, but we will also be sharing the results of this project with the European Space Agency to help advance their analytics development."