A couple of years ago, algorithmic trading was an untapped secret with very few sell-side firms offering it to their clients. Today’s market by comparison is somewhat saturated, with sell-side firms producing a plethora of algo-based tools – almost too many for the buy-side to swallow. The latest of these is a new breed of algorithm that interprets newsflow for traders as soon as it comes off the wire.
Whispers were heard at the start of last year about this new algorithm and by mid-2006 these had grown to murmurs. Now, mid-way through 2007, those murmurs have become full song with Reuters and Dow Jones both releasing ‘tagged’ newsflow products for algorithmic traders in the past 12 months.
