We start 2022 with big plans, beginning with the planned release of our V3 App on the Bloomberg Terminal later this month! Blog readers get a sneak peek throughout the month and into February of the many ways in which investors can solve persistent risks related to public policy risk exposure.
But first, let's' explain the name: V3. It stands for Volatility, Cubed.
Why? Because the Bloomberg Terminal App will be providing capital markets with advanced tools to address all three components of market volatility related to public policy risk: quantitative data, verbal data, and market data. Hence, V3 -- Volatility Cubed.
Global macro strategists, volatility traders, and thematic investors will now have at their fingertips all three factors that impact how public policy risk presents within the capital markets.
Quantitative Data: Daily, objective volume measurements of public policy activity generated by our patented process provides investors with a quick view of which issues are most active. When action (the green line) exceeds rhetoric (the blue line), it means that policymakers are taking more action than the media is reporting. It's an alpha opportunity not just in the moment. Our 2021 backtests have proved that spikes in public policy volatility PRECEDE market volatility. So investors can literally get ahead of the news cycle using actionable information from our data.
Verbal Data: Strategists and traders don't just use the Bloomberg Terminal to access quantitative data. They are also voracious readers and communicators on the Terminal. The words they read are unstructured data. Our patented process does not just time-stamp and quantify action levels in relation to words. We save those words in the context in which they were uttered.....and we highlight the keywords in the PDFs.
This means that traders can read through sometimes dense policy documents very quickly. Interoperability with key Bloomberg Terminal function buttons (see Sneak Peek 1) means the velocity of information acquisition and analysis increases exponentially because V3 App users will literally make connections and see public policy activity BEFORE the rest of the market has priced in the development. Pairing PolicyScope data with the powerful information and analysis of the Bloomberg ecosystem turbo-charges the alpha opportunities.
Market Data: Public policy can drive market movement. Strategists and risk managers assess risk exposures in relation to market prices. The V3 App starts the process of becoming interoperable with market data by providing accelerated access to two initial key data points: (i) how an investor's actual portfolio positions are performing on any given day (the PORT function button) and (ii) how equity futures rates are performing.
These two data points provide a frame of reference for investors to assess whether (or not) markets in general and their portfolios in particular are reacting to an observed public policy shift. If the answer is that markets are not yet reacting, our backtests indicate investors have an average of 10 days to 22 days to devise a strategy before other investors price in the new information.
A human reader racing through quantitative public policy data, actual words from the official sector, and Bloomberg's powerful data and policy analytics will acquire superior tools to power their scenario analysis, nowcasting, and strategy formation. Accelerated insight formation and model parameterization are now at their fingertips with the click of a few function buttons.
Could we add more market data? Of course. As a technical matter, this is not difficult. But the number of market data points is high. We will be guided by feedback from our initial users to prioritize which market data might be the most meaningful in response to market demand.
Interested in learning more about the V3 App? Would you like to be on the waiting list to use the app the minute it is released to the market? Would you like to qualify for the Friends & Family discount? Join the V3 App Waiting List today:
About BCMstrategy, Inc.: BCMstrategy, Inc. uses award-winning technology to measure public policy risks objectively using 9+ layers of patented analytical automation. We convert the words of the public policy process into numbers objectively, automatically, and daily so that investors can make better decisions about their exposure to public policy risks using hard data. In addition to the V3 Bloomberg Terminal App, the core data is available to quantitative analysts in .cvs format via API. Specialized signals regarding cryptocurrency policy activity (DCVS 1) and central bank digital currency policy activity (DCVS 2) are also available via API.