How Financial Markets are disrupted by Social Media: 4 Companies to watch

Hopefully the subject heading caught your attention, if it didn’t, it should. Major Financial and Capital Markets Industry players are finally latching onto the fact, that there might actually be something to social media and online engagement. Moreover they are been seriously disrupted by the advent of social media.

There is an increasing relation between social media and finance. Trading and investment are relying on social signs, the social graph and sentiment to develop their research and social software. There is no doubt that technologies are improving and challenging the Finance and Banking industry both retail and corporative.

Reuters recently launched Social Pulse in partnership with Klout that creates a hit list on what users and people on Reuters network are reading and focus. Bloomberg’s parent company Business Week has launched some time ago a social media platform project that has been going on under the radar: Business Exchange. This last one Business Exchange has some similarities with LinkedIn and wants to access the most relevant content for business professionals, filtered by like-minded experts and professional peers.

On another level the competitive Forex Trading Industry has been quite aggressivelly moving to social media with strong moves from the likes of Etoro, Currenssee.com, Myfxbook.com. These players have been pushing highly the standards and the quality of social trading and investing. IntelligentHQ will follow up on this soon.

According to recent data 75% of Global Stock Market are on App Interface according to a recent Heat Map Displays. Most recent is Intel, whom recently started a Twitter feed, Facebook page and Linked In group, in an effort to spur discussion of global financial markets online, among industry professionals .Yesterday the trade news reported that the original chief executive of Chi-X Europe, Tony Mackay, is going to launch what it termed a ‘Facebourse’ by the end of the year. Trademark anyone?

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1. Facebourse’ a socially-driven stock exchange

In effect,  ‘Facebourse’ is a socially-driven stock exchange, where the social network that matters is your network of market participants. The ones you like or are motivated to follow. According to Mackay, his new platform will have three kinds of markets: a call auction periodic crossing market; a continuous market; and a request for quote (RFQ) market.

In each, users can list which firms to interact with on a disclosed basis – i.e., if an institution wishes to trade 100 orders, it can disclose 80 of those orders to a trusted sub-set of buy-side firms, 10 more to hedge funds, and another 10 to selected sell- side firms, for example.  In the RFQ market, users will also be able to choose which specific traditional and independent market markers they wish to engage. The intention is to offer free and open access for broker-dealers as well as buy-side firms, and to enable market participants to cross inside the spread with trading fees rewarding bigger blocks.

“We have developed a market that will apply social networking principles to trading,” said Mackay, who previously served as CEO of agency broker Instinet in Asia and Europe. “Both buy- and sell-side institutions will regain the ability that they had before computerised trading, to prioritise their flow only to trusted counterparties.”

But as you can see bellow Mackay and his team are not the only ones at it.

2. EuroInvestor recently launched “cockpit” styled as the Facebook for finance

EuroInvestor, the Danish investment financial news platform owned partly by the Copenhagen trading giant Saxo Bank, recently launched the savvy social investor “cockpit” platform. This innovative and disruptive dashboard for traders and investors was styled by Euroinvestor as the Facebook for finance. Cockpit offers substantial financial data in a web 2.0 and a socially enhanced amicable platform. Cockpit is all about providing a customisable view of the most important market data, stock, FX and commodity quotes and news in a host of innovative new features that are seriously opening new doors for self directed savvy investors.  

Cockpit sports a cloud-based app dashboard, with social features integrated which means that it can be accessed from any device with an internet connection. The company hopes that widespread adoption will occur virally, as cockpit has an interesting party trick, share a screen with a friend via email, Facebook, Twitter or Linkedin  for and the recipient is able to follow and recieve real-time information right there from within his desktop. According to Jeff Saul, CEO at euroinvestor.com ,

“The all-in-one nature of the interface, coupled with the fact that it can be accessed from anywhere, makes it especially suitable for equity traders using devices such as tablets (does not work on iPad as it is built in flash for the moment) computers and laptops.

More and more investors want to keep up with developments and take advantage of trading opportunities, in a real time data media world and the Euroinvestor Cockpit is the perfect platform for doing this.”

3. Capital Markets Community Platform Advisory Service online platform 

In 2011, NYSE Euronext, in conjunction with storage giant EMC and VWMare, launched a technology-focused online platform called the Capital Markets Community Platform Advisory Service.   “In our efforts to continue driving the pace of innovation and our goal of enhancing customer value, we saw the benefit of assisting our clients to develop a more detailed understanding of how our Community Platform can help their business,” said Stanley Young, CEO, NYSE Technologies.

“In creating the Capital Markets Community Platform Advisory Service, we tailored EMC’s proven metrics to empirically demonstrate the appeal of moving various workflows and processing tasks into the financial industry’s first dedicated capital markets cloud.”

This week, Twitter has granted full access to its firehose to the social media data mining company rumored to have predicted the death of Osama Bin Laden. The company, Dataminr, plans to use the public tweets “to create actionable signals for enterprise clients.  The Capital Markets Community Platform Advisory Service is customized to identify, quantify and address the unique performance and security requirements of financial services firms seeking lower costs and greater business agility.

According to its press release, Dataminr has developed a new category of Twitter based signals, providing clients with one of the earliest warning systems for breaking news and emerging events. Clients receive signals in real-time, often in advance of mainstream news, alerting them to industry-relevant information and noteworthy events.

Dataminr’s real-time analytics engine processes public Tweets in the aggregate, detecting linguistic and propagation patterns across the over 340 million messages shared on Twitter daily. In addition, Dataminr takes the unique approach of merging Tweets with third-party and client proprietary data to perform multi-variable event detection. Dataminr’s product suite is designed to fit directly into the unique workflow of its client set and provides real-time analytics that enable clients to make mission-critical decisions with greater confidence. Dataminrlogo-intelligentHQ

4. TIBCO ActiveSpaces® 2.0 feed communications from social media and event streams into “big data” storage systems, in real time

Not to be left out Tibco says it now is able to feed communications from social media and event streams into “big data” storage systems, in real time.   The new software, TIBCO ActiveSpaces® 2.0, represents an important innovation that allows organizations to slice and dice “data at rest” together with “data in motion” for more in-depth analysis. The new software is built using a distinctive technology architecture called “shared nothing persistence,” which allows data to be stored either in memory or on disk without requiring a central server.  tibco-logo_TIMIZZER

“We’re excited to help our customers and other big-data pioneers break through the bottlenecks of traditional database and storage technology,” said Matt Quinn, chief technology officer of TIBCO. “With TIBCO ActiveSpaces 2.0, ten servers are ten times faster than one server — whether you’re storing the data in memory or on disk. This makes ActiveSpaces a critical component in high velocity and high-volume analysis and addresses our customers’ big ask of big data: How can I make decisions based on real-time data streams with all the benefits of history?”

Related articles: How Social Media is Affecting the Stock Market