Reports 2016 CTRM Market Update | Page 3

2016 CTRM Market Update /P  hysical and financial commodity deal capture, contract management and origination / Position management and valuation / Tracking/managing of commodities logistics as they apply to functionality commonly deployed as a functional component of large scale CTRM solutions servicing gas, power, crude and bulk product movements / Confirmation, settlement and accounting of deals/transactions / Trader analytics and trading optimization tools / Commodity risk management and analytics including but not limited to, VaR, EaR, limits management, credit risk management and PnL. Products, functionality, and application modules excluded from this and all market sizing analysis include: / Logistical management capabilities not associated with core trading requirements, such as truck, rail or ship tracking software / Treasury and treasury-oriented credit functionality / Production modeling or optimization software for industries such as oil and gas production, mining or agriculture / Applications for managing physical facilities, such as power generation, mines, gas plants, pipelines, refineries, mills or other processing plants / The modules or functional components of ERP applications (such as JDE, SAP and Oracle Financials) that are not directly related to trading or commodity marketing activities / Applications intended only to manage financial products (which may or may not include financial commodities) and provide no capabilities for capturing, valuing or tracking physical commodities / Supply chain management and optimization applications that cannot capture, manage or value traded commodities based upon their unique physical characteristics / Software products related to the metals recycling and waste management segments. In developing this market outlook, we have included the following commodity classes: natural gas, power, oil and oil products, coal, industrial metals, precious metals, agricultural commodities, softs, and others (including freight, RECs, and other minor commodities). Establishing a definitive size for any market, particularly one as complex as commodity trading and risk management, is a difficult exercise and is impossible to complete with absolute certainty. Market sizing, being a forward-looking exercise, must be based upon numerous factors and assumptions. These assumptions include overall economic conditions, forces encouraging new market entrants, historical buying patterns of existing market participants, technology drivers encouraging new purchases, and the number and capabilities of product vendors servicing the needs of the market. Despite these difficulties, we believe that our organization’s unique position in the market, as highly experienced analysts focused exclusively on the intersection of the commodity trading markets and their requisite technologies, provides us the market vision and insight necessary to compile a reliable and accurate estimate of this unique and dynamic technology market. Note: The market sizing figures presented in this study are our best estimates based on the methodology and approach documented herein. They should be treated as estimates and are subject to change should additional information become available. © Commodity Technology Advisory LLC, 2016, All Rights Reserved. 3