Reports ComTech Forecasts 2015 Global CTRM Market at $1.68 | Page 3

2015–2020 CTRM Market Outlook

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Introduction and Scope
Commodity Technology Advisory LLC (ComTech),
the leading analyst firm covering commodity trading and risk management (CTRM) technology markets, has recently completed its biannual in-depth
review of the CTRM software market space in order to compile an estimate of the size of the global
CTRM technology market and prepare an outlook
for growth across the various component submarkets that comprise it.

Products, functionality, and application modules excluded from
this market sizing analysis include:

Readers of this report should be aware that in the development
of this data, as in past years, we must delineate boundaries
for the companies and applications reflected in the scope of
the analysis.

‘CTRM’ is a term that has been widely adopted by many
technology companies. “Traditional” CTRM vendors have been
expanding their reach outside of what has been widely and traditionally accepted as core CTRM through acquisition of applications that would commonly be viewed as tools for managing
and optimizing supply chains and as such, without adjusting
vendor reported results to eliminate these non-CTRM capabilities, we would be overstating the size of the market directly
related to commodity trading and risk management capabilities. As such, for this report, ComTech has utilized a fairly rigid
view of what capabilities are encompassed within the bounds
of CTRM. The included capabilities (and associated services
where applicable) for this report are:

// 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

// Physical 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.

// 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

// 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, that of 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.

© Commodity Technology Advisory LLC, 2015, All Rights Reserved.