Prattle Forecasts Market Reaction to Central Bank Statements with Basis Technology
Basis Technology’s entity extraction highlights the speakers in central bank communications for Prattle’s nuanced Central Bank Sentiment Index.
CAMBRIDGE, MA, December 15, 2015—Financial pundits may obsess over a few words in a central bank press release, but financial analysts need to read and interpret all relevant central bank communications of the day before making decisions. Prattle now provides that nuanced interpretation for analysts with the help of Basis Technology. Using the history of central bank language and market fluctuations, Prattle generates real-time, quantitative, and tradable signals from the communications of 20 central banks around the world. Financial analysts can quickly act on this quantitative information to decide whether to hold or sell. Foreign exchange traders can quickly assess which of 20 economies should get their focus that day.
Basis Technology, the leader in multilingual text analytics, announced today that the entity extraction function of its Rosette text analytics product is enabling Prattle’s Central Bank Sentiment Index to detect the speakers in central bank communications. Rosette finds mentions of people, places, organizations, and 15 other entities within unstructured text in English and 17 other languages.
Speaker identity is crucial to determining whether a statement will be considered by markets as hawkish or dovish. Some central banks don’t tag the speaker explicitly, so entity extraction fills that need. With speaker data, Prattle can tie the speaker to the type of communication and subject matter over time, which is the best barometer of how a person scores in a space.
“We already know implicitly how people line up ideologically at the U.S. Fed, but being able to do this all over the world with foreign central banks, too, has become increasingly important for us,” Evan Schnidman, founder and CEO of Prattle, explains. “The accuracy and dependability of Basis Technology’s entity extraction is powering a set of analyses that otherwise could not be executed in real time. Looking ahead, as we expand to the broader financial data space, we see the importance of Basis Technology’s text analytics only growing for us.”
“Prattle epitomizes the new generation of text analytics providers targeting specialized domains with high accuracy,” Carl Hoffman, CEO of Basis Technology, said. “As these companies continue to innovate and revolutionize entire industries, our mission is to support them with a stable and comprehensive technology platform.”
About Basis Technology
For over 20 years, Basis Technology has been a pioneer in machine learning, revealing meaningful information and intelligence from raw, unstructured text. The Rosette® platform, accessible on premise or as a web API, gives businesses and government agencies around the world the necessary interoperable linguistic tools for deep knowledge decision-making. We work with companies large and small who build applications spanning social media monitoring, risk and compliance, identity management, and security scanning. The Rosette platform adds a wealth of powerful functionality—from pure linguistics to analyses centering around entities, names, and relationships, in Asian, European, and Middle Eastern languages—to any underlying search or database infrastructure. For more information, email firstname.lastname@example.org or visit www.basistech.com.
Prattle Analytics is a text analytics company focused on developing tradable signals from the noise of the financial markets. Its Central Bank Sentiment Index was the first commercially available quantitative “Fed watching” data. Going beyond human analysis, Prattle’s Indexes provide unbiased evaluations of central bank communications in real time to portfolio managers and other finance professionals using the history of past communications and connected market reactions. Currently, Prattle covers 20 of the world’s most important central banks. For more information, visit www.prattle.co.