Emerging Trends in Emerging Data: Alternative Data or Market Data 2.0: Trends, Players, and Technology
Each interaction in the world today between human and machine creates a data point of potential interest to traders and investors.
Key research questions
- How to contextualize alternative data within the framework of existing market data sources and infrastructure?
- What types of emerging data is available?
- What are some of the solutions that are utilized by capital markets firms?
Abstract
This report looks at the profound changes taking place in the creation and usage of data by investors and traders. It focuses on emerging datasets created by transactional data, mobile, satellite and how savvy investors and traders are leveraging them to create unique investment opportunities. It provides a list of the evolving ecosystem and taxonomy of Alternative Data, and the paths traders and portfolio managers need to follow to create an infrastructure for taking advantage of one of the most profound topics in the capital markets today. It explores the concept of data, in itself, becoming the most valuable component of many firms. As such, its preparation, storage, treatment, usage, and distribution will become of growing importance by discussing the findings of discussions with alternative data providers, hedge fund traders, data scientists, portfolio managers, fintech firms, and firms who are looking to create data based products with their exhaust data.