Alpha-hungry hedge funds can now test their strategies over long enough periods to be able to spot real trends.
Even though half of hedge fund managers are now using alternative data to gain a competitive edge, 77% of market leaders find that backtesting of alternative data poses the biggest challenge.
The industry has been debating the need for and merits of a consolidated tape for some time but - unsurprisingly - without consensus on whether or not this should be real-time or on a T+1, post-trade basis.
The term ‘alternative data’ now means any data set that isn't available from existing pricing and fundamental data feeds [...] Rarely does pricing data cross over into the world of alternative data - until now.
Using order book data to drive investment decisions was historically the domain of high frequency trading hedge funds.
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