Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

DCM Capital Starts Trading Venue Mining Twitter Sentiment

Jan. 11 (Bloomberg) -- DCM Capital Ltd. plans to open a trading venue that it says will be the first to offer analysis of posts on social networks such as Twitter Inc. and Facebook Inc. to help traders gauge market mood.

The spread-betting platform, called DCM Dealer, will include a feature that calculates a sentiment rating for individual stocks, indexes and commodities when it opens next week, Paul Hawtin, founder and chief executive officer of DCM Capital, said in a phone interview today. An algorithm gives securities a rating from zero to 100, where the top end indicates the most positive feelings from social media.

“Financial markets are driven by greed and fear but we’ve never had a way to quantify emotion before,” Hawtin said. “We monitor 350 million tweets daily, 2.5 billion weekly. So now investors can monitor investors’ sentiment and human emotion on specific instruments in real time.”

DCM Capital, a London-based company formerly known as Derwent Capital Markets, started a hedge fund using social media to gauge sentiment in August 2011, according to DCM. The Derwent Absolute Return Fund closed three months later.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.