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The SageMaker JumpStart Industry example notebooks are hosted and runnable only through SageMaker Studio. Log in to the SageMaker console, and launch SageMaker Studio. For instructions on how to access the notebooks, see SageMaker JumpStart and SageMaker JumpStart Industry in the Amazon SageMaker Developer Guide.


The example notebooks are for demonstrative purposes only. The notebooks are not financial advice and should not be relied on as financial or investment advice.

Classify SEC 10K/Q Filings to Industry Codes Based on the MDNA Text Column



The purpose of this notebook is to address the following question: Can we train a model to detect the broad industry category of a company from the text of Management Discussion & Analysis (MD&A) section in SEC filings?

This notebook demonstrates how to use of text data in U.S. Securities and Exchange Commission (SEC) filings, matching industry codes, adding NLP scores, and creating a multimodal training dataset. The multimodal dataset is then used for training a model for multiclass classification tasks.

Curating Input Data

This example notebook demonstrates how to train a model on a synthetic training dataset that’s curated using the SEC Forms retrieval tool provided by the SageMaker JumpStart Industry Python SDK. You’ll download a large number of SEC 10-K/Q forms for companies in the S&P 500 from 2000 to 2019. A separate column of the dataframe contains the MD&A section of the filings. The MD&A section is chosen because it is the most popular section used in the finance industry for natural language processing (NLP). The SIC industry codes are also used for matching to those in the NAICS system.

Important: This example notebook is for demonstrative purposes only. It is not financial advice and should not be relied on as financial or investment advice.

General Steps

This notebook takes the following steps: 1. Prepare training and testing datasets. 2. Add NLP scores to the MD&A text features. 3. Train the AutoGluon model for classification on the extended dataframe of MD&A text and NLP scores.

SageMaker Studio Kernel Setup

Recommended kernel is Python 3 (Data Science). DO NOT use the Python 3 (SageMaker JumpStart Data Science 1.0) kernel because there are some differences in preinstalled dependency. For the instance type, using a larger instance with sufficient memory can be helpful to download the following materials.

Load Data, SDK, and Dependencies

The following code cells download the `smjsindustry SDK <>`__, dependencies, and dataset from an S3 bucket prepared by SageMaker JumpStart Industry. You will learn how to use the smjsindustry SDK which contains various APIs to curate SEC datasets. The dataset in this example was synthetically generated using the smjsindustry package’s SEC Forms Retrieval tool. For more information, see the SageMaker JumpStart Industry Python SDK documentation.

notebook_artifact_bucket = 'jumpstart-cache-alpha-us-west-2'
notebook_data_prefix = 'smfinance-notebook-data/mnist'
notebook_sdk_prefix = 'smfinance-notebook-dependency/smjsindustry'
notebook_autogluon_prefix = 'smfinance-notebook-dependency/autogluon'
# Download example dataset
data_bucket = f's3://{notebook_artifact_bucket}/{notebook_data_prefix}'
!aws s3 sync $data_bucket ./

Install packages running the following code block. It installs packages that are needed for machine learning, as they are not available as defaults in the Studio kernel.

# Install smjsindustry SDK
sdk_bucket = f's3://{notebook_artifact_bucket}/{notebook_sdk_prefix}'
!aws s3 sync $sdk_bucket ./

!pip install --no-index smjsindustry-1.0.0-py3-none-any.whl
 # import some packages
 import boto3
 import pandas as pd
 import sagemaker
 import smjsindustry

**Note**: Step 1 and Step 2 will show you how to preprocess the
training data and how to add MD&A Text features and NLP scores. You
can also opt to use our provided preprocessed data
``sample_train_nlp_scores.csv`` and ``sample_test_nlp_scores.csv``
skip Step 1&2 and directly go to Step 3.

Step 1: Prepare a Dataset

Here, we read in the dataframe curated by the SEC Retriever that is already prepared as an example. The use of the Retriever is described in another notebook provided, SEC_Retrieval_Summarizer_Scoring.ipynb. The industry codes shown here correspond to those in the NAICS system. We also attached the industry codes from Standard Industrial Classification (SIC) Manual.

Because 10-K/Q firms are filed once a quarter, each firm shows up several instances in the dataset. When separating the dataset into train and test sets, we made sure that firms only appear in either the train or the test dataset, not in both. This ensures that the models are not able to use the name of a firm from the training dataset to recognize and classify firms in the test dataset.

The classification task here appears trivial but it is not; the MD&A section of the forms includes very long texts. In a separate analysis, we count the number of tokens (words) in each MD&A section for 12,144 filings, and obtain a mean of 5,307 tokens (sd=3,598 and interquartile range of 3140 to 6505). Transformer models, such as BERT, usually handle maximum sequence lengths of 512 or 1024 tokens. Therefore, it is unlikely that this classification task will benefit from recent advances in transformer models.

Important: This example notebook uses data obtained from the SEC EDGAR database. You are responsible for complying with EDGAR’s access terms and conditions located in the Accessing EDGAR Data page.

# READ IN THE DATASETS (The file sizes are large. They are about 1 GB in total)
train_df = pd.read_csv('sec_ind_train.csv')
test_df = pd.read_csv('sec_ind_test.csv')
# Remove the very small classes to simplify, if needed
train_df = train_df[train_df.industry_code!="C"]
train_df = train_df[train_df.industry_code!="F"]
test_df = test_df[test_df.industry_code!="C"]
test_df = test_df[test_df.industry_code!="F"]

You can find in the following cells that there are over 11,000 for the train dataset and over 3,000 for the test dataset. Note that there’s a label (class) imbalance underlying in the dataset.

# Show classes
print(train_df.shape, test_df.shape)

For demonstration purposes, take a sample from the original dataset to reduce the time for training.

sample_train_df = train_df.groupby('industry_code', group_keys=False).apply(pd.DataFrame.sample, n=80, random_state=12)
sample_test_df = test_df.groupby('industry_code', group_keys=False).apply(pd.DataFrame.sample, n=20, random_state=12)
# Save the smaller datasets for use

Step 2: Add NLP scores to the MD&A Text Features

Here we use the NLP scoring API to add three additional numerical features to the dataframe for a better classification performance. The columns will carry scores of the various attributes of the text.

NLP scoring delivers a score as the fraction of words in a document that are in one of the word lists. You can provide your own word list to calculate the NLP scores, such as negative, positive, risk, uncertainty, certainty, litigious, fraud and safe word lists.

The approach taken here does not use human-curated word lists such as the popular dictionary from Loughran and McDonald, widely used in academia. Instead, the word lists here are generated from word embeddings trained on standard large text corpora where each word list comprises words that are close to the concept word (e.g. “risk”) in embedding space. These word lists may contain words that a human may list out, but may still occur in the context of the concept word.

You can also calculate your own scoring type by specifying a new word list.

Technical notes:

  1. The data loader accesses a container to process the request. There might be some latency when starting up the container, which accounts for a few initial minutes. The actual filings extraction occurs after this.

  2. The data loader only supports processing jobs with only one instance at the moment.

  3. Users are not charged for the waiting time used when the instance is initializing (this takes 3-5 minutes).

  4. The name of the processing job is shown in the run time log.

  5. You can also access the processing job from the SageMaker console. On the left navigation pane, choose Processing, Processing job.

Prepare a SageMaker session S3 bucket and folder to store processed data

import sagemaker
session = sagemaker.Session()
bucket = session.default_bucket()

Construct a SageMaker processor for NLP scoring

import smjsindustry
from smjsindustry import NLPScoreType
from smjsindustry import NLPScorer
from smjsindustry import NLPScorerConfig

score_types = [NLPScoreType.POSITIVE, NLPScoreType.NEGATIVE, NLPScoreType.SAFE]

score_type_list = list(
    NLPScoreType(score_type, [])
    for score_type in score_types

nlp_scorer_config = NLPScorerConfig(score_type_list)

nlp_score_processor = NLPScorer(
        sagemaker.get_execution_role(),         # loading job execution role
        1,                                      # number of ec2 instances to run the loading job, can support multiple instances
        'ml.c5.18xlarge',                       # ec2 instance type to run the loading job
        volume_size_in_gb=30,                   # size in GB of the EBS volume to use
        volume_kms_key=None,                    # KMS key for the processing volume
        output_kms_key=None,                    # KMS key ID for processing job outputs
        max_runtime_in_seconds=None,            # timeout in seconds. Default is 24 hours.
        sagemaker_session=sagemaker.Session(),  # session object
        tags=None)                              # a list of key-value pairs

Run the NLP-scoring processing job on the training set

The processing job runs on a ml.c5.18xlarge instance to reduce the running time. If ml.c5.18xlarge is not available in your AWS Region, change to a different CPU-based instance. If you encounter error messages that you’ve exceeded your quota, contact AWS Support to request a service limit increase for SageMaker resources you want to scale up.

    "MDNA",                                                                               # input column
    'sample_train.csv',                                                                   # input from s3 bucket
    's3://{}/{}/{}'.format(bucket, mnist_folder, 'output'),                               # output s3 prefix (both bucket and folder names are required)
    'sample_train_nlp_scores.csv'                                                         # output file name

Examine the dataframe of the tabular-and-text (TabText) data.

Note that it has a column for MD&A text, a categorical column for industry code, and three numerical columns (POSITIVE, NEGATIVE, and SAFE). In the next step, you’ll use this multimodal dataset to train a model of AWS Gluon, which can accommodate the multimodal data.

client = boto3.client('s3')
client.download_file(bucket, '{}/{}/{}'.format(mnist_folder, 'output', 'sample_train_nlp_scores.csv'), 'sample_train_nlp_scores.csv')
df = pd.read_csv('sample_train_nlp_scores.csv')

Run the NLP-scoring processing job on the test set

    "MDNA",                                                                               # input column
    'sample_test.csv',                                                                    # input from s3 bucket
    's3://{}/{}/{}'.format(bucket, mnist_folder, 'output'),                               # output s3 prefix (both bucket and folder names are required)
    'sample_test_nlp_scores.csv'                                                          # output file name

Examine the dataframe of the TabText data.

client = boto3.client('s3')
client.download_file(bucket, '{}/{}/{}'.format(mnist_folder, 'output', 'sample_test_nlp_scores.csv'), 'sample_test_nlp_scores.csv')
df = pd.read_csv('sample_test_nlp_scores.csv')

Step 3: Train the AutoGluon Model for Classification on the TabText Data Consists of the MD&A Texts, Industry Codes, and the NLP scores

We create lib folder and requirements.txt file to store AutoGluon related dependencies. These dependencies will be installed in the training containers. For more information, see Use third-party libraries in the Amazon SageMaker Python SDK documentation.

autogluon_bucket = f"s3://{notebook_artifact_bucket}/{notebook_autogluon_prefix}"
!aws s3 sync $autogluon_bucket ./
!mkdir -p model-training/lib
!tar -zxvf autogluon.tar.gz -C model-training/lib --strip-components=1 --no-same-owner
!cd model-training/lib && ls > ../requirements.txt
!cd model-training && sed -i -e 's#^#lib/#' requirements.txt
  1. Read in the extended TabText dataframes created in the previous code blocks.

  2. Normalize the NLP scores, as this usually helps improve the ML model.

  3. Upload the training and test dataset to the session bucket.

  4. Train and evaluate the model in MXNet. See more details in the

  5. Generate the leaderboard to examine all the different models for performance.

%pylab inline
from sklearn import preprocessing
from sklearn.preprocessing import MinMaxScaler
scaler = MinMaxScaler()

# Read in the prepared data files
sample_train_nlp_df = pd.read_csv("sample_train_nlp_scores.csv")
sample_test_nlp_df = pd.read_csv("sample_test_nlp_scores.csv")

# Normalize the NLP score columns
nlp_scores_names = ['negative', 'positive', 'safe']
for col in nlp_scores_names:
    x = array(sample_train_nlp_df[col]).reshape(-1,1)
    sample_train_nlp_df[col] = scaler.fit_transform(x)
    x = array(sample_test_nlp_df[col]).reshape(-1,1)
    sample_test_nlp_df[col] = scaler.fit_transform(x)
import sagemaker
session = sagemaker.Session()
bucket = session.default_bucket()

sample_train_nlp_df.to_csv("train_data.csv", index=False)
sample_test_nlp_df.to_csv("test_data.csv", index=False)

train_s3_path = session.upload_data('train_data.csv', bucket=bucket, key_prefix=mnist_folder+'/'+'data')
test_s3_path = session.upload_data('test_data.csv', bucket=bucket, key_prefix=mnist_folder+'/'+'data')

The training job takes around 10 minutes with the sample dataset. If you want to train a model with your own data, you may need to update the training script in themodel-training folder. If you want to use a GPU instance to achieve a better accuracy, please replace train_instance_type with the desired GPU instance and uncomment fit_args and hyperparameters to pass in the related arguments to the training script as hyperparameters.

from sagemaker.mxnet import MXNet

# Define required label and additional parameters for Autogluon TabularPredictor
init_args = {
  'label': 'industry_code'

# Define parameters for Autogluon TabularPredictor fit method
#fit_args = {
#  'ag_args_fit': {'num_gpus': 1}

hyperparameters = {'init_args': str(init_args)}
#hyperparameters = {'init_args': str(init_args), 'fit_args': str(fit_args)}

tags = [{'Key' : 'AlgorithmName', 'Value' : 'AutoGluon-Tabular'},
        {'Key' : 'ProjectName', 'Value' : 'Jumpstart-gecko'},]

estimator = MXNet(
    enable_network_isolation=True,  # Set enable_network_isolation=True to ensure a security running environment

inputs = {'training': train_s3_path, 'testing': test_s3_path}

We download the following files (training job artifacts) from the SageMaker session’s default S3 bucket: * leaderboard.csv * predictions.csv * feature_importance.csv * evaluation.json

import boto3

s3_client = boto3.client("s3")
job_name = estimator._current_job_name
s3_client.download_file(bucket, f"{job_name}/output/output.tar.gz", "output.tar.gz")
!tar -xvzf output.tar.gz
leaderboard = pd.read_csv("leaderboard.csv")
import json

with open('evaluation.json') as f:
    data = json.load(f)
from sklearn.metrics import classification_report, confusion_matrix
import matplotlib.pyplot as plt
import networkx as nx
import seaborn as sns

y_true = sample_test_nlp_df[init_args['label']]
y_pred = pd.read_csv("predictions.csv")['industry_code']

#Classification report
report_dict = classification_report(
        y_true, y_pred, output_dict=True, labels=['B','D','E','G','H','I']
report_dict.pop('accuracy', None)
report_dict_df = pd.DataFrame(report_dict).T
report_dict_df.to_csv("classification_report.csv", index=True)

#Confusion matrix
cm = confusion_matrix(y_true, y_pred, labels=['B','D','E','G','H','I'])
cm_df = pd.DataFrame(cm, ['B','D','E','G','H','I'], ['B','D','E','G','H','I'])
cmap = "coolwarm"
sns.heatmap(cm_df, annot=True, fmt="d", cmap=cmap)
plt.title("Confusion Matrix")
plt.ylabel("true label")
plt.xlabel("predicted label")


  1. We curated a TabText dataframe concatenating text, tabular, and categorical data.

  2. We demonstrated how to do ML on a TabText (multimodal) data using AutoGluon.

Clean Up

After you are done using this notebook, delete the model artifacts and other resources to avoid any incurring charges.

Caution: You need to manually delete resources that you may have created while running the notebook, such as Amazon S3 buckets for model artifacts, training datasets, processing artifacts, and Amazon CloudWatch log groups.

For more information about cleaning up resources, see Clean Up in the Amazon SageMaker Developer Guide.

Further Supports

The SEC filings retrieval API operations we introduced at the beginning of this example notebook also download and parse other SEC forms, such as 495, 497, 497K, S-3ASR, and N-1A. If you need further support for any other types of finance documents, reach out to the SageMaker JumpStart team through AWS Support or AWS Developer Forums for Amazon SageMaker.


  1. What’s New post

  2. Blogs:

  3. Documentation and links to the SageMaker JumpStart Industry Python SDK:


The SageMaker JumpStart Industry product and its related materials are under the Legal License Terms.