Trading software firm connects to Twitter for market information

Traders are using Twitter to make decisions on buying and selling shares.

Traders are using Twitter to make decisions on buying and selling shares.

Trading software maker Streambase is enabling traders to link its complex event monitoring (CEP) software to Twitter through an adaptor to help it receive information from the microblogging website to help it make decisions on buying and selling shares.

The software can connect a trading system to Twitter to help it monitor what is being said about certain companies and get a mood for the market. Automatic trading systems make decisions on buying or selling stock based partly on data from news services.

Streambase said a number of its clients are already using the software.

With millions of messages sent on Twitter every day, the software has to work at extremely high speed. CEP software, which is used throughout the share trading sector, is ideal.

Mark Palmer, CEO of Streambase, said: "We are seeing business applications that ingest Twitter message content, frequency, patterns, hashtag use, and so on, and then transmit Twitter messages. For example, trading systems or operations support can use Twitter direct messaging to alert users of trading opportunities or system problems."

PJ Di Giammarino, CEO at financial services think-tank JWG-IT, said computerised trading systems already use news services to help them make decisions. "Twitter would just be another one. People would have to tag and understand the information to help them make decisions."

But Bob McDowall, analyst at Towergroup, said regulation is required for this type of activity.

"Streambase have connected their trading support technology monitor on twitter.com for price sensitive information- a somewhat irresponsible application that can deliver all sorts of rumours to the markets," he said. "These sites should be regulated if they are being used to access this frivolous and notoriously unreliable form of data collection."

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