Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

Dow Jones’ Elementized News Feed Makes Headlines

Sometimes it helps to search for certain key phrases among the many news sources that are indexed by the Google News search service. A search for the term "Lars Toomre" on Friday October 12th 2007 reveals that Mr. Toomre was quoted by eFinancialNews in an October 1st 2007 story entitled Dow Jones’ News Feed Makes Headlines.

This linked Dow Jones news release highlights that Dow Jones' Elementized News Feed Service recently won the Best Data Solution category of the 2007 Financial News Awards for Excellence in I.T. The Financial News service story reads as follows:

01 Oct 2007
Best Data Solution
Winner: Dow Jones

Runners-up: Markit Partners, Reuters TIC data
Dow Jones won the Best Data Solution category this year on the strength of its Elementized News Feed service, which launched in March. One member of the judging panel called the service “revolutionary”. Designed for both buyside and sellside firms, the feed delivers computer-readable news data directly into quantitative analysis models and automated trading programs within milliseconds. It is aimed at firms involved in algorithmic trading, quantitative analysis and execution management.

Dennis Cahill, senior vice-president and chief product officer, Dow Jones Enterprise Media Group, said: “In today’s competitive automated trading environment, proprietary traders, hedge funds and quantitative analysts are looking for every possible edge in their information sources and technology.

“This feed revolutionizes how news can be analyzed and acted upon by market participants, while giving our clients the best possible news input for their proprietary models. This enables them to make trading, investing and hedging decisions with minimum latency and maximum security.”

The feed delivers headlines in precisely tagged elements on a low latency feed. Numerical data, timestamps, symbols and other information are placed into XML-tagged fields. This eliminates the need to parse unstructured text, allowing trading models and computer programs to process, interpret and take action on breaking news quickly. The feed also comes with an archive of news dating back to January 2004 that has been elementized for back-testing and statistical analysis of news flow and historical market reactions.

Also part of the service are market-moving economic indicators – critical to market direction and pricing for companies – and corporate news data covering public companies in the US and the UK. Earnings, other corporate data and sentiment tagging, which signals whether news is significant or unexpected, is included. Dow Jones believes the Elementized News Feed delivers faster decisions and enhanced analysis. As with many of the winners of this year’s awards, speed is of the essence in trading and Dow Jones claims it can deliver the ability to take the fastest market actions.

Human intervention is minimized and feed and archive data is delivered in a consistent, well-structured format that maximizes the dependability of all data points and output.

Lars Toomre, managing director of Toomre Capital Markets, an enterprise risk management adviser, believes XML-based feeds such as that of Dow Jones should enable the creation of sophisticated trading and risk management algorithms.