Now Automated: Delivery of Pre-Announcements of Earnings
August 2, 2010
Earnings announcements are now standard parts of market data fees. Monday, a provider of real –time data said it would start making pre-annnouncements of earnings part of its feed to securities traders.
The announcement about automating pre-announcements of earnings came from Selerity, a high-speed aggregator and deliverer of event data to hedge funds, banks and proprietary trading firms.
“Unexpected developments can represent the largest trading opportunities for firms since there is more liquidity in the market and sometimes a more significant reaction due to traders being caught off-guard,” said Ryan Terpstra, founder and CEO of Selerity. “Unexpected events can also ‘blindside’ market-makers. By adding preannouncements to Selerity’s data feed offering, our clients can better manage risk and improve their trading strategies.”
Companies use preannouncements to release either positive or negative news ahead of their earnings date to help reset the market’s expectations, Selerity noted. Selerity’s search and extraction technology automatically categorizes an event using Natural Language Processing, in identifying unexpected events.
Selerity launched its platform for delivering machine-readable data on U.S. corporate, economic and energy events data in early March.
