Article ID: a6bf28a4de067f396f0f769a9550238642440d8f9da7cc8e0703de0474f04e51
Source ID: regulatory:risk.net
Published At: -
Extraction Method: trafilatura
URL: https://www.risk.net/resource/7963232/harnessing-llms-for-financial-alpha
Body Text
Harnessing LLMs for financial alpha Recent developments in Natural Language Processing (NLP) have brought about large improvements in the ability to both analyse and generate text-based data. These theoretical modelling breakthroughs have been accompanied by significant increases in computational power and software tools that make harnessing this enhanced processing capability more accessible to researchers. Meanwhile, substantial development efforts have gone into producing highly optimised hardware and software, such as the NVIDIA® CUDA® Toolkit CUDA toolkit and transformers packages, that make it possible to run, fine-tune and deploy many of the most powerful language models within only a few hundred lines of code. These factors together have meant that the potential to leverage text-based data has never been greater. This study limits analysis to US equities within the S&P 500 to prioritise liquidity and data consistency. Future extensions could incorporate global equities, leveraging LSEG’s international coverage. This would require adjustments for cross-border factors such as time zones and regulatory differences. Download the whitepaper Register for free access to hundreds of resources.
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