ETX Capital Launches US Election News Sentiment Index, Powered by Big Data

Sometimes traditional polling just doesn't cut it.

The US Presidential Election is shaping up to be one of the most divisive affairs in recent memory – given the financial ramifications of each candidate facing the markets, ETX Capital has launched a new US Election News Sentiment Index to help better predict what the final electoral result will be on November 8, 2016.

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The US Election News Sentiment Index utilizes a number of cutting edge developments, including the ability to disseminate and process a wide range of media coverage. The index relies on big data and Natural Language Processing (NLP), both of which can help filter out noise to better predict the outcome of the election.

As a result of lessons garnered from the Brexit vote earlier this year, markets being caught flat-footed or events not being priced in can trigger enormous bouts of volatility. ETX Capital’s newest index was designed to help give market participants a more transparent view of the race, one that chooses to rely on big data as opposed to polling methodologies utilized by major US pollsters. The US Election News Sentiment Index will also support visual tools offered by NLP specialist, Acuity Trading.

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According to Neil Wilson, Market Analyst at ETX Capital in a recent statement on the index offering: “Election cycles are highly emotive events that are scrutinised in depth by the media, therefore taking centre stage in a trader’s outlook. During BREXIT we needed a tool to help our traders understand the swift dynamics of media opinion.”

“By working with Acuity Trading we have reacted quickly to client demands and are now offering this US Election Index, a first in terms of technology and product in the market. We hope to bring more innovations like this to market in the future through our continued partnership with Acuity Trading.”

Andrew Lane_Square
Andrew Lane

“This US Election News Sentiment Index is a really exciting step for ETX Capital who have been championing the use of this technology in the retail financial markets for some time now. We are still only on the cusp of what will be possible with Big Data in Financial Markets and Acuity Trading aims to lead this revolution by partnering with likeminded organisations such as ETX Capital,” explained Andrew Lane, CEO of Acuity Trading in an accompanying statement.

“This US Elections Index is, for the first time, able to offer traders a reliable barometer of how the media and financial markets are interacting around the US Elections which has direct knock-on effects to the global financial market,” he added.

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