Europe Stock Benchmark Owner to Create World's First AI IndexBy
Firm is also considering building a cryptocurrency index
Advanced technology making further inroads on Wall Street
Stoxx Ltd., a division of Germany’s Deutsche Bourse AG, hopes to build its first index created from artificial intelligence by the first quarter of next year, said chief executive officer Matteo Andreetto.
The achievement for Stoxx -- the operator of benchmarks including the Euro Stoxx 50 and Germany’s DAX Index -- would be what Andreetto says is a world first and take smart strategies to a new level. A 20-strong team of data scientists is working to help the company’s computers better screen information that can drive investment ideas, he said in an interview in Hong Kong Tuesday.
Advanced technology and big data are making increasingly large waves on Wall Street, from robot-run exchange-traded funds to programs that help traders anticipate market moves. For Stoxx, one goal is to create indexes that find new trade ideas and investment themes -- such as aging populations, for example -- that conventional indexes haven’t explored.
“We are now in an advanced stage to use those techniques in the creation of an indices,” Andreetto said. Deutsche Bourse’s investment in data-mining company Trifacta in September was part of a plan to build out the firm’s data analysis capability, he said.
Stoxx is also exploring whether enough demand exists to create an index that tracks cryptocurrencies, Andreetto said. Pricing and liquidity are factors being looked at, he said, adding that the company has not yet made a decision.