Big data specialist, Digital Contact, has invested part of its $3.8 million funding to expand its analytics engine ready for the launch of its new financial monitoring platform, trading.co.uk.
Using big data, social media, advanced natural language processing (NLP) technology and analytics, the new platform aims to deliver real-time financial information and insights ahead of traditional sources.
With the expansion of its big data analytics engine, Digital
Contact is able to capture and store data from over 1.6 million
web sources, whilst monitoring and storing more than 250,000
social media messages per second at peak times. The platform is
capable of processing up to 22 billion of these messages per day,
further validating these data points, tracking sentiment and
financial information around companies, markets, and sectors.
Digital Contact also runs named entity recognition across each of
these sources to identify who and what the content is about.
Utilising its social media analytics and NLP technology, on June 2, 2015, trading.co.uk flagged Merlin Entertainment as a potential risk, almost immediately after the tragic Alton Towers 'Smiler' crash occurred - a whole hour before the stock dropped 10%.
Digital Contact CEO, Gareth Mann, said: "What happens in seconds
and minutes can drastically change the decisions traders make.
Our pick-up of the Merlin Entertainment (owner of Alton Towers)
accident and how it affected the stock price just goes to show
how social media is a vital source of information if companies
and traders want to stay ahead of the curve. However fast our
news media is today, it can take as long as an hour for something
to be picked up and, by that point, a story could already have
emerged on social media, so making sense of online chatter is
what can make or break a trade. Our big data engine is now
processing more than ever before, and we're constantly refining
it to see how we can push it even further, meaning trading.co.uk
is set to be a market contender when we launch later this year."
Trading.co.uk has already been monitoring chatter around major companies. When HSBC accidentally tweeted the UK launch date of Apple Pay, the social conversation circled the topic on the Sunday, 12th July 2015 and by Tuesday 14th July (the official launch date) Apple's stock price had increased by $5.
A couple of weeks later, when Tesco announced it was banning sugary drinks including Ribena, Capri-Sun and Rubicon from its shelves in a crackdown on obesity, shift in social chatter was reported on the dashboard. It spotted above-average mentions of Ribena on the Tesco tag cloud between 8.00am and 12.00pm, corresponding with Tesco seeing two sudden stock price drops of 2p within an hour - one at 9.42am and one at 10.28am.
Investors using the platform would have seen the news stories breaking on the retailer as they broke, enabling them to make a decision on whether or not to sell their shares.