Semantic Finance: Leveraging Breakthroughs in Language Models for Real-Time Financial News Insights
In today's fast-paced financial markets, information is the key to success. Financial institutions need to react quickly to unexpected events that affect the markets, and news is the primary source of such information. However, the existing news feeds are often too slow, unactionable, and noisy, making it difficult to filter out the relevant news from the 99% noise. Semantic Finance, a start-up founded in 2023 in San Francisco, aims to solve this problem by providing financial institutions with a real-time news insights API that leverages breakthroughs in language models to filter out the noise faster than the markets can react. In this article, we will explore how Semantic Finance works and how it can benefit financial institutions.
Who are the Founders of Semantic Finance?
The founders of Semantic Finance are Akhil Murthy and Joshua Ying. Joshua is the CEO, and Akhil is the CTO. They met in high school and reconnected after working at different software engineering companies for seven years, including Google, IBM, Squarespace, and Charles Schwab. They share a similar interest in how underutilized qualitative data is in financial markets. Joshua developed an event-based trading algorithm that Ematiq proposed to implement during his time at Google. Akhil has been studying how news impacts markets from a quantitative standpoint independently for years. Together, they decided to create Semantic Finance to leverage breakthroughs in language models for real-time financial news insights.
What is the Problem with Existing News Feeds?
Existing news feeds are often too slow, unactionable, and noisy. They provide no additional information or filtering on the context, urgency, and market impact. As a result, financial institutions have to spend a lot of time and resources manually filtering out the relevant news from the noise, which slows down their reaction time to unexpected events. This inefficiency can result in missed opportunities and losses.
How Does Semantic Finance Provide a Solution?
Semantic Finance provides a novel insights layer on top of aggregated news and social media feeds, leveraging breakthroughs in large language models (LLMs) to structure and automatically find the news that matters. They monitor clustered mentions across multiple sources, engagement metrics over time, and anomalous price/volume changes to determine the market impact of events in real-time. Their primary offering is the Semantic API, which is article and tweet data that has been cleaned, filtered, and structured using LLMs. With Semantic Alerts, financial institutions can also receive alerts ahead of the market on events that matter. They can configure which priority levels activate Discord, Telegram, SMS, email, and phone calls.
How Does Semantic Finance Use LLMs for Real-Time News Insights?
Semantic Finance uses GPT-4, an incredible language model, to improve asset recognition from 42% to 91%, and topic recognition from 54% to 84%. GPT-4's semantic understanding of text allows Semantic Finance to instantly find the needle in the haystack, filtering out the 99% noise faster than the markets can react. By leveraging breakthroughs in LLMs, Semantic Finance can provide financial institutions with real-time news insights that can help them react quickly to unexpected events that affect the markets.
What are the Benefits of Using Semantic Finance?
Using Semantic Finance can provide a range of benefits to financial institutions and traders alike. Some of the key benefits include:
Faster and More Accurate Insights: With the Semantic API, financial institutions can get real-time news insights that are accurate and relevant. This can help traders react faster to market events, leading to better trading decisions.
Increased Efficiency: By filtering out the noise and providing only relevant news and social media updates, Semantic Finance helps traders save time and focus on what really matters. This can increase efficiency and productivity.
Improved Risk Management: Semantic Finance's real-time insights can help financial institutions identify potential risks and take proactive measures to manage them. This can help reduce the impact of market events on the institution's portfolio.
Customizable Alerts: Semantic Finance's alert system is customizable, allowing traders to configure priority levels and receive alerts through multiple channels. This ensures that they never miss an important event.
Improved Asset Recognition: With the help of GPT-4's semantic understanding of text, Semantic Finance can improve asset recognition from 42% to 91%. This means that financial institutions can identify the impact of specific events on specific assets more accurately.
Enhanced Topic Recognition: Semantic Finance can also improve topic recognition from 54% to 84%, which means that financial institutions can quickly identify news related to specific topics or industries.
Overall, Semantic Finance can provide financial institutions and traders with the tools they need to make better trading decisions, react faster to market events, and reduce risks. With its real-time news insights and customizable alerts, it is a powerful tool for anyone looking to stay ahead of the curve in the fast-paced world of finance.
What Sets Semantic Finance Apart?
Semantic Finance stands out from other financial news providers in several ways. Firstly, its use of breakthroughs in LLMs' semantic understanding of text allows it to filter out the noise and provide only relevant news and social media updates in real-time. This means that traders can focus on what really matters and make better trading decisions.
Secondly, Semantic Finance's alert system is customizable, allowing traders to configure priority levels and receive alerts through multiple channels. This ensures that they never miss an important event and can react quickly to market events.
Finally, Semantic Finance's founders have a combined 7 years of experience in Software Engineering at companies such as Google, IBM, Squarespace, and Charles Schwab. This means that they have the technical expertise needed to build a powerful and reliable platform.
Semantic Finance is a start-up based in San Francisco that provides financial institutions with a real-time news insights API for unexpected events that affect the financial markets. Using trade data, article and social media engagement, and breakthroughs in language models, Semantic Finance filters the 99% noise faster than the markets can react. Its primary offering is the Semantic API, which is article and tweet data that has been cleaned, filtered, and structured using LLMs.
With its real-time news insights, customizable alerts, and improved asset and topic recognition, Semantic Finance is a powerful tool for financial institutions and traders looking to stay ahead of the curve in the fast-paced world of finance. Its founders have the technical expertise needed to build a reliable and effective platform, and its use of breakthroughs in LLMs' semantic understanding of text sets it apart from other financial news providers.