Intercontinental Exchange has launched a suite of data and analytical tools designed to transform millions of Reddit conversations into structured, actionable market signals for investors.
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With the explosion of retail trading over recent years, Reddit has become a hotbed of market chatter, with communities built up on places likes the WallStreetBets subreddit where people turn to help them navigate the markets.
ICE is looking to help institutional investors tap into this chatter by analysing anonymised and aggregated trends from the real-time Reddit data stream, and applying AI and data science expertise.
Reddit Signals and Sentiment is available over ICE’s data platforms, including the consolidated feed. It offers real-time and historical sentiment scores, and a daily graph showing which companies, products or entities are trending and being discussed together.
Chris Edmonds, president, fixed income and data services, ICE, says: “The Reddit community produces a massive amount of complex, unstructured, but often very insightful, information across millions of active user conversations.
“By bringing our vast experience working with large, complex datasets, we’re able to quickly identify useful market signals, connect them to companies and securities in our entity database, and compress the information cycle to help investors find new alpha-generating opportunities and manage risk.”