A week or so ago, I spoke with Ricardo Rosa of TRADESPARENT to get an update on the company and a read on how he saw the market. TRADESPARENT is an integrated data and analytics software solution with its roots in commodity trading and processing Industry. It is designed to easily adapt to any existing data environment, collecting and harmonizing all internal and external data points such as finance and CTRM systems data and excel spreadsheets into a single source of the truth Data Repository across the organization’s entire business. It offers a number of overlays for risk analytics, regulatory compliance, positions & performance, and dynamic margin management. So far, it has been successful in the Ags, food products and energy arena.
It has apparently just opened new offices in the USA and is planning to expand further into southern Europe, the Middle East and Asian regions where it already has a growing presence. It has also added 5 new employees, he told me, having won a large multinational customer recently with 5 more new customers expected in the next 2/3 months.
The company has been investing in its software too and recently it has been working on improving its stress testing model, he explained. The new stress testing functionality allows multiple stress scenarios at the same time. Late last year, they worked on the notifications system which pushes out notifications about events like limit monitoring, for example. The system can be set up with pre-configured notifications and users can subscribe to these or set up their own. Another area of effort has been in building a wizard for import where superusers can define an external data source to the system and instantaneously see results.
He sees a lot of interest generally in the industry around areas like,
- Data repository & management for accurate and timely reporting and analysis,
- Regulatory Compliance: EMIR TR Reporting/Exchange Limit Monitoring/CFTC,
- Risk Analytics: Stress Testing (released an enhanced version), VaR, Limit Monitoring, Counterparty Risk, Option Analytics,
- Dynamic Margin Management applied to Plantations/Processing/Refining, and
- FIX connectivity.
Which is helping to drive interest in the TRADESPARENT solutions and fueling the company’s growth.
ComTech sees TRADESPARENT as an example of a horizontal platform play with the Commodity Trading & Risk Management ecosystem. Particularly where there are complex supply chains and very specific commodity-specific requirements, businesses often end up with multiple vertical solutions yet need an integrated enterprise view of things like trade reporting and compliance, risk management and so on. Increasingly the disaggregation of CTRM is resulting in ecosystems of deeply functional vertical applications combined with horizontal applications for reporting purposes. Vendors like Eka and others such as Gen10, for example, are pursuing a similar strategy while platforms like Beacon also provide a pre-configured development toolbox to achieve a customized version of a CTRM ecosystem. We are not surprised to find TRADESPARENT growing as having adequate business control is always going to be a focus in commodities that is hard to deliver in a vertical CTRM solution.