CubeLogic Sees SaaS Compliance Tool Take Off
CubeLogic has seen strong market demand for its SaaS trade surveillance solution and is seeing greater adoption of the solution as regulations increasingly bite, are updated and extended. Andre Kopp of CubeLogic told me that CubeWatchTS, which was originally an on premises installed and implemented solution, has been a software as a service offering for some time now. The SaaS version is single tenanted in the cloud and delivered on Azure. “Another advantage of this is that no customer IT staff is needed to onboard customers – it is in the users’ hands more rapidly.”
This means that CubeLogic can provide the solution rapidly to new customers. “We have optimized the SaaS version so much that we can now onboard customers very quickly and have significantly reduced their workload to get it up and running. In simple terms, we just need to get credentials and off we go,” he told me. Recently, for example, it had a customer up and running in just two-weeks. “We can onboard customers very rapidly especially by comparison to what they may be used to with on premises applications and we can do that in parallel.”
Which is just as well as he also went on to say that 2024 was its most successful year ever in terms of adding new customers for the compliance product and that is seeing considerable demand in the market. Meanwhile, CubeLogic is working on its next upgrade in v11 that he says will see a spring 2025 release. “Again, we can get customers upgraded very rapidly over weeks.” He says that almost half of current customers are on v10 already.
The surge in business and interest that CubeLogic has seen in its compliance solution is of course driven by firms being under more and more regulatory pressure. However, it’s not just the regulators as Andre points to exchanges and other stakeholders as also taking a keen interest in compliance on the part of partners and customers. REMIT2 has also led to even greater scrutiny around transaction surveillance and compliance in EU physical gas and power markets, he told me. “Of course, the huge fines being levied have made people much more aware of regulations and the need to have this sort of product as well,” he said. Andre also pointed to changes in the way trading is conducted as also helping to drive demand – “More and more are trading with auto and algo traders,” he said. “This means much more data and activity that need to be controlled.”
CubeLogic also feels that it has one of a few solutions on the market that was designed for the complexities of physical energy and commodities and is therefore fit for purpose. “Since we only deliver the solution for energy and commodities, it was designed and is delivered complete with specific features and functions for commodity trading, which we believe are unique,” he told me.
Andre also sees other benefits potentially in play when using the solution. “Many firms are starting from scratch in looking at this compliance data – its new to them,” he explained. “That means that compliance teams are getting to see data that they previously didn’t have real visibility into, and using the solution, in a form that allows rapid visualization and analysis. It’s fresh actionable input and switching on the tool is often an eye opener for the customer.”
CubeLogic sees significant potential for its solution as market demand is keen, it believes its solution to be strongly differentiated particularly because of its energy and commodity-specific focus, and the ability to onboard and maintain customers very rapidly. Andre is very bullish about the future of its tool and enthusiastic about the value it can provide customers.
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