Waters Technology: Buy Side, FISD Begin Industry Push for Alt Data Standards..

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Alternative data holds great promise as a leading indicator of alpha. But in response to firms struggling with the data science aspects of integrating the data, various industry participants are pursuing new initiatives to make it more accessible, reports Max Bowie.

To a hammer, every challenge resembles a nail. And to an industry excited by the promise of nontraditional, “alternative” data, every new dataset represents an untapped source of alpha. But while it’s easy to swing a hammer, exploiting the value hidden within alternative datasets can be hard work—made even harder by a lack of standards that could make alternative data more transparent and expedite the processes of onboarding and utilizing new datasets.