Forefront Communications

Waters: Wall Street Horizon Bows EventBreaks Event Change Info

LiquidityBook

Mark Dowd

Mark Dowd

Event data provider Wall Street Horizon has released a new events alerting and analysis add-on component, dubbed EventBreaks, to its Enchilada event data product suite, which extends the analysis previously provided for earnings release dates to all event types covered by Enchilada.

Examples of event types that could impact a company’s stock price include changing the company executive delivering a presentation at an investor conference; moving a company’s shareholder meeting from its home city to a distant location; extending a buyback offering, with new terms; and delaying an earnings date or conference call.

Vendor officials say academic research has established that traders can gain alpha by understanding the impact of these types of changes, while a survey of institutional investors published earlier this year by the vendor revealed that 80 percent of respondents wanted greater functionality to alert them to changes in events.

Wall Street Horizon chief executive Barry Star calls these—typically negative—types of events “examples of corporate non-verbal communication,” equating them to an individual’s “tells” and body language.

“This is the kind of thing options traders are looking for,” Star says. “I used to not understand why traders got so excited about earnings calendars—but they’re really excited about the changes to the earnings calendar.”

Read the full article here.

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