|[January 21, 2014]
The Next Great Frontier for Capital Markets Text Analytics is Proprietary Data, Says TABB
NEW YORK & LONDON --(Business Wire)--
In new research published today, "Inner
Voices: Harvesting Text Analytics from Proprietary Data," TABB Group
believes the next great frontier for text analytics is proprietary data,
but if capital markets firms expect to find broadly applicable value in
the growing fire hose of unstructured content, they are going to need an
enterprise-ready platform and industrial-strength solutions.
According to the report's co-authors, research
analyst Valerie Bogard and senior
analyst Paul Rowady, early adoption of text analytics tools has been
limited to machine-readable news feeds targeted at ultra-low latency
trading strategies, but the breadth of use cases and the profiles of
buyers are expanding rapidly to new areas. However, the main challenge
to expansion has been the lack of an enterprise-ready platform but with
the increasing breadth of applicability and its power to harvest
actionable insights from unstructured big data, enterprise text
analytics solutions should be on the short list of candidates that will
see an increase in spend, says Rowady.
Internally generated and disseminated unstructured data holds a high
value for customized intelligence, but as Bogard points out, it has so
far remained untapped. "Enhancing the technology already mining social
media and news and applying it to this new dataset is the next step in
the megatrend of machine-readable content that should be in every market
data arsenal, despite the challenges."
High-level challenges associated with textual analytics include storage
architecture, security, apturing new formats of content and
incorporating the contextual nuances of content. These issues are
increasingly being addressed and improved, leading to greater
applicability to risk, operations and compliance areas. Ensuring that
the technology is flexible enough to allow for any user to manipulate
and configure any data set to their needs is an ambitious project,
Rowady cautions, that intrinsically requires a complex system of
collection, preparation, processing and publishing.
This complex procedure uses reference data, metadata tagging, sentiment
analysis and methods of classification and extraction to create an end
product capable of being consumed by machines and humans alike. But as
the two authors explain, to make text analytics solutions easier to
implement and utilize, they must include four key attributes: digest a
comprehensive array of data sources, a growing bulk of which are
proprietary; offer flexible modeling and output formats; be highly
scalable; and offer lower-cost / higher-speed encryption.
This may loom as a challenge for a technology still in its early stages
of development but TABB Group believes the writing is on the wall: the
functionality to securely ingest any unstructured data, perform any
filtering routine, configure the right output and scale to
enterprise-level needs is converging quickly. In time, says Rowady, we
expect more datasets to be automatically enhanced with more granular
metadata to prepare it for later detailed analytics.
The 15-page report with 8 exhibits is available for download by TABB
Group Research Alliance Equities
and Analytics clients and pre-qualified media at http://www.tabbgroup.com/Login.aspx.
For the Executive
Summary or to purchase the research, go to http://www.tabbgroup.com/PublicationDetail.aspx?PublicationID=1442&MenuID=44&ParentMenuID=2&PageID=43
or write to firstname.lastname@example.org.
About TABB Group
Based in New York and London, TABB
is the only research and consulting firm focused exclusively on capital
markets, based on the interview-based, "first-person knowledge" research
methodology developed by Larry Tabb. For more information, visit www.tabbgroup.com.
In 2010, TABB launched TabbFORUM,
the online capital markets community for peer-to-peer contributed
opinion and analysis covering current industry issues, tracked daily by
18,000-plus professionals; in October, 2013, QuantFORUM, a new online
channel for the global quantitative investing community, went live.
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