NYSE Technologies, the commercial technology division of NYSE Euronext, and Social Market Analytics (SMA) today announced an agreement to distribute sentiment statistics from SMA’s patent-pending social media monitoring engine through NYSE Technologies SFTI Network, and its normalized market data service, SuperFeed.
Social media has become a crucial source of information for the financial services community, in addition to corporate analytics groups in the non-financial sector. The SMA Sentiment Signature Feed will offer customers a first-of-a-kind tool for including social media sentiment in their market analysis and decision-making processes.
As part of the agreement, NYSE Technologies’ subscribing customers can access data from SMA’s social media monitoring engine. SMA’s engine extracts, evaluates and calculates data in real-time to attempt to generate directional and volatility indications on individual stocks, ETFs, sectors, and indices by measuring the level and quality of social media interactions on social media sources relative to historical levels. SMA’s engine seeks to create a social media signature, consisting of
seven statistical indicators
: S-Score, S-Mean, S-Delta, S-Volatility, S-Buzz, and S-Dispersion, which may allow customers to track relative sentiment, in addition to volume, change, and dispersion of social media commentary.
“Everyone is monitoring what is being said on Twitter now. SMA offers firms the right tool for the job with data that consists of clear, quantified, actionable intelligence on social media sentiment,” said Tom Watson, Vice President, Global Market Data, NYSE Technologies. “We believe this will change the way the financial sector thinks about social media. For the first time, trading firms, brokers, asset managers, and non-financials in every sector will have a measurable way to track the sentiment of the social media stream of consciousness.”
“Social Media is already a large but still rapidly growing means of communication and efficient global interaction. Many of these conversations discuss companies, stocks and market activity, but until now there hasn’t been a way to collect and quantify this data,” said Joe Gits, CEO of SMA. “Our process is unique in this emerging field both in its approach to filtering social media data and in the analytical methodology used to develop our proprietary metrics. We are excited to be working with NYSE Technologies to offer this service to a wide range of clients delivered quickly and cost-effectively over the SFTI network.”