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.

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