AFTAs 2017: Most Cutting-Edge IT Initiative—JPMorgan Asset & Wealth Management
“The latest instantiation took approximately three months to develop and was built through strong partnership across the investment team and the technology team, with two members of the investment team with PhDs in artificial intelligence, and three technologists—two focused on the server side, and one focused on the graphical user interface front-end—focused on the project,” says Kent Zheng, head of global research technology for EMEA at JPMorgan Asset Management. The tool sifts through hundreds of news sources received through providers including Bloomberg and FactSet, along with wider unstructured data each day, using a recurrent neural network that is continuously trained by manually labelled data to pick up patterns that distinguish M&A-related news articles from others. “The NewsFilter picks up words from unstructured news articles in free text format and filters out uninformative components, forming a domain-specific vocabulary and transforming the input into a structured form. We use a distributed representation to translate the words in the text to predictive features. This allows semantically similar words to cluster in a high-dimensional space. In addition, we initialize our deep-learning process with pre-trained vector embeddings to leverage the rich semantic domain knowledge captured by large studies carried out on billions of news items and Wikipedia articles,” says Zheng.
The tool is useful in removing potential sources of “idiosyncratic risk,” says Yazann Romahi, chief investment officer of QBS at the firm. This is useful in the rumor-mired world of M&A. Romahi estimates that the machine-learning enhancements have improved performance in long/short by up to 0.5 percent per year, by filtering out and avoiding up to eight potential shorts per year. NewsFilter is under continuous development. Along with the ongoing training of the neural network, it also takes into account “user feedback to dynamically improve its predictions,” Zheng says. “This is a fast-moving field, and we regularly carry out model comparisons to incorporate the newest methodologies into our solution. On top of relevance, we are also expanding the classification framework to be able to distinguish between actionable news items versus rumors. We are also looking to develop a novelty factor component that can verify whether a news article contains new deal information that was not captured by articles that preceded it,” he says.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Awards & Rankings
Asia Awards 2024: Best transaction-cost analysis (TCA) solution—big xyt
Product: Open TCA
Asia Awards 2024: Best middle-office platform—EquiLend
Product: EquiLend Spire
Women in Technology & Data Awards 2024 winner's interview: Joanna Davies (OSTTRA)
OSTTRA's Joanna Davies won the vendor professional of the year (data and operations) category in this year’s Women’s awards.
WatersTechnology Asia Awards 2024: All the winners and why they won
Here are the vendor and end-user winners of the 34 categories that make up the 5th annual WatersTechnology Asia Awards, announced on June 20.
Asia Awards 2024: Best analytics solution—oneZero
Product: oneZero Data Source
Asia Awards 2024: Best alternative data provider—RavenPack
Product: RavenPack Factor Library
Most read
- IEX Cloud closure forces fintech clients to seek data alternatives
- Zeros and ones: Industry contemplates T+0 as the next step
- Natixis refines in-house interoperability model