NewsHedge: Machine Learning Meets News & Trading Alerts

Jul 24 2015 | 2:05pm ET

Automated news services have always been part of institutional trading desks, but many just fade into the background noise. The team at Newshedge Squawk, however, have applied modern technology to develop a self-learning, automated squawk service that uncovers unusual trading events in real time.

Company Name: NewsHedge Squawk

Location: Chicago, IL


Twitter: @newshedge

StockTwits: NewsHedge_Squawk

FinTech sector: Financial data provider. SaaS and API feed.

Year formed: 2012. Launched April 2015.

Number of employees: 3

Stage: In revenue (pre-seed).

Pitch: NewsHedge Squawk uses direct access exchange feeds to individually monitor over 6,000 assets for unusual trading behavior. NewsHedge Squawk not only delivers market information that’s notable and relevant in real time, but it does so audibly-the method of receiving information that human beings react to fastest. We’re not giving traders one more thing to look at. We’re giving them something to listen to.

How is your firm different than other companies in the same space?

Besides developing self-learning, self-adjusting algorithms for tracking thousands of tickers and cusips on a tick-by-tick basis, we’re the only company in the world that reports real-time financial events and market news (news coming soon!) using automated voice technologies. Think Apple’s Siri, but strictly for the markets.

What is your revenue model? How will the company make money?

NewsHedge Squawk is free, and always will be. User participation in NewsHedge Squawk fuels our continued innovation and growth. As features expand, we’ll introduce a premium subscriber model.

We currently make money with our NewsHedge API by servicing two market channels:

1) Trading firms around the world can use our low-latency API for managing market impact, detecting alpha opportunities, and for optimizing risks.

2) Broker dealers, trading platforms, and news application vendors can integrate our audio broadcasting technologies and visual event notifications to enhance their product offerings.

Who is your target market? How big is the opportunity?

NewsHedge Squawk (SaaS) targets individual users, trading groups, and institutional firms looking to effectively navigate the financial markets on a real-time basis.

Our API facilitates institutional trading while also supporting various platform vendors who wish to incorporate our audio/visual reporting features.

Last year, professionals spent over $26 billion on financial news and market data. We believe our patented broadcasting and visual event notification technologies will soon grab a modest slice of that market.

Why are you and your team capable of succeeding?

We have each pioneered new methods and technologies within our respected fields. Each of us also has experience developing startups. Those combined experiences taught us the importance of securing intellectual property, how to work as team, why we need to be agile, and how to properly allocate cash.

What is your company’s next target/milestone?

We’ll soon be broadcasting relevant corporate news events, earnings, and economic numbers using machine-readable-news technologies. And later this year, we will introduce crowdsourcing features into the NewsHedge Squawk platform for structuring public opinion associated with real-time events.

Can you tell us one unusual fact about your company?

We invented new media. We’re the only company in the world broadcasting real-time financial information using automated voice technologies, and it’s patented.

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