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Ventana Research, June 2008 The Emerging Role of News Feeds for Algorithmic Trading & Advanced Decision Support
Abstract
Ventana Research recently conducted a study into the opinions and attitudes of trading and investing professionals regarding automating news analysis. There were 113 qualified participants in the research. The group represented a diverse set of respondents: 38 percent work in buy-side firms (investment management, hedge fund or private equity/venture capital), 37 percent are on the sell side (investment bank or broker/dealer), and the remaining 25 percent work in other types of organizations.
In terms of scope, about one-third (36%) of the participants’ organizations have a single trading desk, another 52 percent have multiple desks, and the remaining 12 percent have some other configuration. In terms of trading style, 18 percent described their organization as ultra-high frequency, 24 percent high frequency, 41 percent medium frequency and 17 percent low frequency. More than half (57%) describe their investment and trading style as fundamental, another one-third (35%) as quantitative and 8 percent as statistical arbitrage.
A majority (58%) of the participants work in firms with fewer than 100 employees, 22% are in organizations with between 100 and 999 employees, and the remaining one-fifth are in companies with 1,000 or more employees.
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