Nicholas Pratt
Nicholas Pratt

FOCUS : Machine Readable News (MRN) - an escalation in the algorithmic FX trading arms race?

Nicholas Pratt investigates what technical and technology issues are involved in developing and deploying MRN for Algorithmic FX trading.

The former British prime minister Harold McMillan was once asked by a young journalist what single factor could affect a government’s plans. “Events dear boy. Events.” The same sentiment can be applied to the world’s financial markets – that the best laid economic plans can be thrown off-course by unexpected and unanticipated events. This has been demonstrated lately by the sub-prime crisis that has engulfed the US lending market and has subsequently sent seismic ripples through the world’s currency markets as the extent of exposure to the US mortgage market becomes evident. The causal link between events and economic volatility has long been recognised by traders and as the execution of trading strategies becomes increasingly automated and dependant on algorithms, traders have been searching for a way to integrate ‘events’ and not just purely economic indicators into their trading algorithms. This demand has led to the development of machine readable news...continued

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