Reports CTRM Value Survey and Anaysis | Page 2

CTRM Value Survey and Analysis

Report Background and Overview
The environment of physical energy and non-energy commodity trading and marketing has grown increasingly complex,
marked by globalization bringing about rapid changes in supply and demand patterns, increased regulatory scrutiny and
evolving trading and reporting rules, volatility along the entirety of the physical supply chain, and increasing uncertainty as
to future price movements. In order to react to these changes quickly and appropriately, participants in these markets must
increasingly rely on a sophisticated infrastructure of software and technologies to ensure a complete view of their trading
positions and external market conditions that can quickly and severely impact their values. The core component of these
now requisite trading and marketing technologies are energy and commodity trading and risk management (CTRM) systems.
As market complexity has increased and multi-commodity trading has become more common, CTRM solutions have had to
become more sophisticated and provide a greater depth of capability in order to capture and value the unique
characteristics of the multitude of physical commodities being transacted along the physical supply chain, from source to
market. Given the capabilities of these CTRM systems, they do represent a significant investment for any trading or
marketing organization, generally trailing only the large scale ERP solutions, like SAP, in terms of costs to purchase and
implement.
Allegro Development, one of the world’s largest CTRM solutions providers, engaged Commodity Technology Advisory to
conduct a survey of a number of their clients to determine their views as to the value of their investment and the operational
and financial impacts of deploying Allegro’s CTRM solution.
This report summarizes the results of that survey and discusses the key considerations for any company seeking to develop
their own assessment of the value of their CTRM technology investment via a Return on Investment (ROI) calculation.

© 2013 Commodity Technology Advisory LLC

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