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Thomson Reuters adds Twitter sentiment analysis to Eikon trading terminal

Matthew Finnegan | Feb. 4, 2014
Thomson Reuters has released the latest version of its Eikon trading terminal, with the addition of new features including a social media sentiment analysis tool.

The use of social media sentiment analysis in automated trading has received criticism in the past due to the impact of fake tweets being sent out. Last year the Dow Jones Index plunged after Associated Press' Twitter account was hacked by the Syrian Electronic Army and erroneous tweets were posted, highlighting the potentially negative impact of social media on markets.

However the Eikon sentiment analysis aims to also make it easier for humans to quickly make sense of masses of social media information currently available, with tens of thousands of tweets about major companies each day.

"The ability to incorporate social media into the analytics toolkit is becoming an increasingly frequent demand from today's generation of traders," said Aite Group analyst Danielle Tierney. "Such functionality is no longer just a value-add, but is well on its way to becoming an important part of many quantitative strategies. The real differentiator is usability, or how this data is then harnessed to present financial professionals with an easily-digestible picture of market trends."

 

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