Semlab to research News Optimised Risk Management (NORM)

The European Union has approved our NORM proposal. Semlab and a consortium of international partners will start researching News Optimised Risk Management.

In today’s chaotic financial climate, systems for predicting market behaviour and attitudes of financial professionals are under scrutiny. Current market risk assessment characteristics disregard market information that is available from additional sources like, for example, financial news. There are whole new possibilities for producing meaningful market behaviour models by incorporating behavioural and quantitative finance, using the latest techniques and powerful modelling tools. The prevailing market environment can (to some extent) be captured by key innovative techniques of news analytics that quantify news sentiments. The emergence and impact of such behavioural finance is illustrated by the 4-5 Nobel Prizes for Economics awarded in this field in recent years.

This project aims to enhance market risk assessment metrics by using semantically analysed news-based information. This will compensate for inflexibility of existing models with regard to strong market fluctuations or market instability and give more dynamic, more reliable market risk estimation.

Forum on News Analytics, London

This week, Semlab attended the ‘Forum on News Analytics applied to Trading, Fund Management and Risk Control’, at Canary Wharf in London.

Our director of research, Dr. Mark Vreijling, gave a lecture on Semlab’s cutting edge news analytics platform ViewerPro, and the prospects of using semantic news analysis for Trading and Risk Control.

Financial news contains market information that is potentially useful for trading and risk assessment. Most financial companies still have no way of automatically analysing news and information is either missed or takes long to process. With semantic analysis platforms like ViewerPro, no news is missed and desisions can be made much quicker.

For more information: Forum on News Analytics

Semlab lecture at Dow Jones meeting in Frankfurt

Semlab’s director of research, Dr. Mark Vreijling, was invited by Dow Jones to lecture on ‘Semantic analyses for non scheduled event driven trading’ at ‘The Evolution of Trading & Execution’ meeting in Frankfurt am Main, on Wednesday the 18th of November, 2009.

Other speakers include Prof. Dr. Christoph Lattemann (Professor for Corporate Governance & eCommerce, University of Potsdam), Nicole Schröpfer (Business Development Manager, Dow Jones), Klaus Brune (News Editor, Dow Jones).

For more information: Dow Jones Briefing

Semlab to enhance Market Risk assessment metrics

Semlab, together with an international consortium of financial experts and supported by several large financial institutions, has submitted a proposal to the EU to enhance market risk assessment calculations by incorporating real time semantically analysed news-based market information.

The aim is to improve market risk metrics, such as the Value at Risk (VaR) and Expected Shortfall (ES). The incorporation of financial news will compensate for inflexibility of existing models with regard to strong market fluctuations or market instability and give more dynamic and more reliable market risk estimation.

The consortium consists of several top level financial experts and software companies as well as cutting edge research institutes.