Alternative Data: Regulatory and Ethical Issues for Financial Services Firms to Consider - March 2020

Not too long ago, an investment manager looking to invest in a company might conduct due diligence, attend investor relation calls, peruse quarterly or annual filings, and consider standard ratios such as price to earnings and debt to equity. Today, such an investment manager might supplement this fundamental analysis with data analytics on a range of topics; for example, the company’s supply chains, shipping routes, consumer credit card transactions, social media mentions, and employment trends, to forecast earnings, growth prospects, and long/short opportunities (such information typically referred to as “alternative data”).

Today’s computerized and mobile world generates countless gigabytes of data every second, and those seeking an informational advantage in the markets have taken notice. Data sources can be mined for insights not apparent to other market participants. Regulators have taken notice as well, because the use and possible informational advantage of such alternative data sources and “dark analytics” raises some very thorny questions regarding propriety, privacy, fairness, and ethics.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Written by:

Latham & Watkins LLP

Latham & Watkins LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.