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grown. Additionally, midstream operators, those providing production gathering, processing and sometimes
marketing services to producers are making substantial investments in new facilities and infrastructure as
exploration and production has expanded into new areas.
Utilities, including both power and natural gas, will continue to spend dollars to upgrade and maintain their trading
capabilities, though the rate of growth for those expenditures is expected to small.
Several large Agricultural and CPG companies have committed to very large CTRM deals (with licenses value of more
than $10 million) in the last three years; however, as previously noted, ComTech believes these size of deals are an
exception and we do not believe deals of this scale will become the norm in this market. Results through YTD 2013
indicate that while the number of deals done in these market segments will increase (increased penetration) it is
unlikely that deals with a license value of greater than $10 million of deals will be signed at a pace that we’ve seen
in the last few years. Nonetheless, we believe the number of deals in these market segments will increase and the
value of those deals will offset the reduced per deal value, resulting in year-over-year increases greater than the 5%
average for the broader CTRM category.
The global metals markets began slowing in 2012 as demand declined in part to a slowing of the Chinese economic
growth. Through most of 2013 the market had not fully revered, though most market analysts believe the outlook
for an improved metals market is strong. ComTech believe the metals trading markets will perform on average with
the global CTRM markets, at about 5% per year.
Within the last decade, the market has increasing seen the rise of trading companies that have expanded their focus
from a single commodity or single class of commodities (such as energy, ags, softs, metals) and are now trading a
broader portfolios of commodities. These companies, most global in the scale of their trading, may be most identified
with a particular class of commodity, (such as Cargill in agricultural commodities), they are in fact also trading a much
broader array of commodities. For this “multi-class” market segment, we anticipate the growth rate will be on par
with the market average, app ɽ