FlexTrade Systems, a leading provider of trading technology for equities, foreign exchange and listed derivatives, announced in March that it has integrated a pre-trade analytics solution from Kensho Technologies into its Flextrader execution management system.
Kensho is a Boston-based company that uses artificial intelligence to develop analytical tools for market participants. Its software scans a wide range of public databases and news feeds, then surfaces company-specific key developments such as product launches, mergers and acquisitions, or corporate announcements. Kensho's analytics solution provides a detailed, real-time event feed to assist a trader’s decision-making process.
One of Kensho's features is that it can surface second-order relationships, such as when a key development in one company’s news feed will impact a different company the trader is analyzing. Kensho also creates an evolving timeline of precedents, so traders can analyze the impact of similar historical events to gain an understanding of how the market may react.
“Kensho’s partnership with FlexTrade continues our mission to deliver actionable intelligence to our users,” said Daniel Nadler, chief executive officer and founder of Kensho. “This is achieved through an ever-expanding knowledge graph of the world that leverages artificial intelligence to power the insight gained from a complete picture of the events that impact companies.”
Kensho has emerged as a leader in the field of applying artificial intelligence in finance. The company, which was bought by S&P Global in March for $550 million, was launched in 2012 with funding from several venture capital firms. Goldman Sachs partnered with the firm in 2014 to develop applications for trading environments, and was impressed enough to buy a $7 million stake in 2015. In 2017, the company raised additional funding from Bank of America Merrill Lynch, Citigroup, J.P. Morgan, Morgan Stanley and Wells Fargo.