Market gossip is to take on a more high-tech form thanks to a new automated system that will trawl through more than 40m internet sources - from blogs to regulatory filings - on behalf of hedge funds.

Due for an official launch early next year, the platform is being run by a former Deutsche Bank executive and has received financing from, among others, Draper Fisher Jurvetson, the venture capital firm that backed Skype before it was sold to Ebay for $4.1bn last year. Ten hedge funds are trying out the system.