Alternative investment managers always have sought to access a wide array of data sources to inform their investment research and decisions. In recent years, the topic of “big data”, combined with artificial intelligence and machine learning, has attracted significant attention, fuelled by explosive growth in available alternative data sources, such as business and financial transactions, social media, apps, web-scraping, geo-location data, satellites and sensors. Trialling such new data is significantly slowed due to the negotiating process of a trial data license agreement.
The Trial Data Licence Agreement addresses this by providing a template which addresses some of the key issues, including personal data protection, prevention of insider trading and ‘right to use data’.
The publication of the SBAI Trial Data Licence Agreements follows the SBAI Big Data/Artificial Intelligence in Asset Management events in London (summary), New York (summary), Hong Kong and San Francisco, where SBAI stakeholders explored impact of innovation on investment strategies and focused on better understanding key legal and compliance considerations.