- Emotional Data Intelligence increasingly important for the stock market and regulatory environment
- First trading surveillance office worldwide with access to StockPulse data services
- Both parties agree on long-term cooperation and expansion of the process chain
Frankfurt am Main/Bonn, October 8th, 2019. The Trading Surveillance Office (TSO) of the Frankfurt Stock Exchange and Eurex Germany has agreed on a cooperation of several years with data specialist StockPulse from Bonn after a test run of almost one year. This means that the TSO of Frankfurt Stock Exchange and Eurex Germany is the world’s first trading surveillance of a stock exchange that permanently evaluates social media data via StockPulse in order to comprehensively monitor stock trading.
Real-time data streams and current analyses from StockPulse help to make market events more transparent and secure. The social media evaluation of possible stock price relevant comments or contributions around important events such as ad hoc announcements are examples of a whole series of processes that are currently being used and will be expanded in the future. The reliable and timely detection of spam or bots, which are potentially used by third parties in social media to manipulate prices, is also an important part of StockPulse’s service package.
“Social media monitoring is a central task for monitoring stock trading today, especially when it comes to detecting fake news and users with manipulative intentions. We rely on methods from the areas of machine learning and artificial intelligence, which are based on alternative data sources such as social media. With StockPulse, we have a partner who reliably supports us in this task.“, says Michael Zollweg, Head of Trading Surveillance Office of the Frankfurt Stock Exchange and Eurex Germany.
“We are pleased to have gained the Trading Surveillance Office of one of the world’s largest stock exchanges as a client.”, says Stefan Nann, CEO of StockPulse. “With this step we are strongly expanding our business in this field and will soon be able to announce further clients in this area. With this partnership, the Trading Surveillance Office of the Frankfurt Stock Exchange and Eurex Germany is not only accessing our real-time data streams and analyses, but also our comprehensive historical database dating back to 2011. For the relatively new format of social media sentiment data this is a remarkably long data history.”
Nann adds: “Stricter regulation and new legislative requirements mean that stock exchanges need to consider alternative data sources with an increased focus in order to comply with comprehensive trade monitoring processes. StockPulse offers tailor-made solutions for this purpose.” StockPulse currently collects and analyzes data from social media sources in German, English and Chinese. The analysis of data in other languages relevant to global financial markets follows in the near future.
About the Trading Surveillance Office (TSO) of the Frankfurt Stock Exchange and Eurex Germany
The Trading Surveillance Office of the Frankfurt Stock Exchange and Eurex Germany is an independent stock exchange organ (§ 7 of the Stock Exchange Act) and has the task of monitoring trading on the stock exchange and uncovering deficiencies that could jeopardize proper exchange trading. In this capacity, it reports to the Hessian stock exchange supervisory authority in Wiesbaden and is subordinate under labor law to Deutsche Börse AG in Eschborn.
StockPulse is a German-based data analytics company which specializes in Emotional Data Intelligence. The core idea is to improve and support data-driven decision making for institutional financial investors by collecting and analyzing alternative data from social media, with a particular focus on financial markets. Using latest big data and machine learning technologies, communication on stocks, indices, commodities, forex and major market events is monitored and evaluated in real-time. Text analysis is done in three languages: English, German and Chinese. StockPulse clients come from different geographic and business areas and include top-tier hedge funds, asset managers, banks, stock exchanges, private equity companies, financial publishers, online brokers, news portals, research companies, and universities.