SEC Must Set Due Diligence Standards for Use of Alternative Data

The alternative data market allows investors to access hyper-detailed information about commercial activity, supplementing traditional financial analysis. Steady demand from investors for this cutting-edge data has rapidly expanded its market.

Alternative data isn’t found in company filings, press releases, analyst reports, or other conventional sources. Instead, automated methods allow gathering of web traffic, social media, product reviews, commercial transactions, GPS data, and other sources for insights that help investors.