Chartis

Commodity Trading Risk Management Systems - Market Update 2017

February 2017 • Ref RR1704
Research Report
Number of pages: 28
Single user license: Subscription only
Number of figures and tables: 7 
 

Overview

This report is an update to Commodity Trading Risk Management Systems 2015, reflecting the notable shifts that have occurred in the market for Commodity Trading Risk Management (CTRM) solutions in recent months. It analyzes:

  • The emerging business and technology trends in the market, and how they are influencing commodity trading firms’ solution requirements.
  • How solution vendors are responding to these new demands.

Much of the evolution in the CTRM market is the result of a move toward the trading of physical commodities, caused in turn by changes in the participant pool in trading markets. This is having repercussions for the technology solutions market, as offerings divide into two broad groups to cater to more traditional requirements and those of the traders – and end users – who are focusing on physical assets.

Among the new functionality to emerge is much more fine-tuned and sophisticated management of supply chain information and processes, a common area of innovation for CTRM vendors. These new functions – and others, such as improved contract management tools – now emulate much ERP software, which is proving a considerable boon to traders (particularly given the growing amounts of data they have to process).

But the diverse nature of commodities markets is an overriding theme, and the vendor landscape is fragmented. Vendors are increasingly faced with a choice of offering broad-based or more specific functionality; few – if any – will be able to offer solutions that cover the entire range of functionality, even as requirements evolve in the changing marketplace.

The evolution itself will also create opportunities: in providing and managing data, and in adjacent areas to commodities markets – recycling, for example – encouraging vendors to innovate in new ways. We will also see some consolidation: mostly larger vendors buying up rivals with sharply focused offerings to build out their portfolios. The overarching trend, however, will be toward specialization as vendors continue to hone their offerings in specific areas.

This report uses Chartis’s RiskTech Quadrant® to explain the structure of the market. The RiskTech Quadrant® uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs. The RiskTech Quadrant® does not simply describe one technology solution as the best credit risk management solution; it has a sophisticated ranking methodology to explain which solutions would be best for buyers, depending on their implementation strategies.

This report covers the leading vendors offering commodity trading risk management systems, including: Agiboo, Allegro, Amphora, Ancoa, Brady, CME Group, Cultura Technologies, Eka, FIS, GlobalView, GrainBridge, ICE, iRely, Murex, OpenLink, Quantifi, S&P Global, and SAS.