Over the years, there has been a growing realization that building a commodity trading and risk management (CTRM) solution is not a trivial task. Indeed, quite the opposite. It is a hugely complex piece of software that can never seem to meet all the varied needs of all the different types of companies buying and selling commodities around the globe.

1. INSTANT CTRM
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2. Instant CTRM in the Cloud A ComTechAdvisory Whitepaper
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INTRODUCTION
Over the years, there has been a growing realization that building a commodity
trading and risk management (CTRM) solution is not a trivial task. Indeed, quite
the opposite. It is a hugely complex piece of software that can never seem to meet
all the varied needs of all the different types of companies buying and selling
commodities around the globe.
Vendor-provided software has, by necessity,
to be even more complex since it requires
significant configurability to be built in to it to
cater to sufficient users to make it economic
for the vendor. It has therefore always been an
expensive enterprise – not just in terms of the
license or usage fees – but also for upgrades,
enhancements, and integration. It is a truism
that most CTRM solutions are, in reality, a poor
fit to requirements, as evidenced by the plethora
of spreadsheets and other tools needed to
support the business.
However, advances in technologies, the
emergence of the cloud, and twenty-odd
years of experience in building and deploying
CTRM solutions have resulted in advances in
architectures and approaches that for some, at
least, can mean a lower cost solution. These
same drivers have also resulted in the possibility
of reduced implementation timescales and
costs while the pay-as-you-go model of usage
fees that came with the cloud, has allowed
smaller firms the ability to utilize commercial
software. Customers who desire a lower-risk,
easier-to-use CTRM solution, something that
can be up and running in days, not months, that
does the job without taking years and an army to
implement, nor requiring financing to put in, now
have options. This paper explores the promise of
instant CTRM in the cloud.
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3. Instant CTRM in the Cloud A ComTechAdvisory Whitepaper
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In a very diverse industry that ranges from very small one or two-person firms with a specific
commodity and market focus, to global mega-business that are involved in many different
commodities and raw materials, CTRM solutions have historically been designed to be as
configurable and flexible as possible. But this configurability and flexibility come at the cost of
increased complexity. This not only means that users need to be well trained and to develop
expertise on the product to use it well but, it also increased the difficulty, costs, and timeframe
of the implementation, and increases the risks of partial or complete implementation failure.
THE CTRM DILEMMA
Stories abound in the industry of failed implementations
or of implementations that went on far too long at
huge cost and in the end, delivered only a portion of
the expected business benefits. CTRM software has
developed a reputation for complexity and subpar
implementation results over the last two decades and
even homegrown software often delivers sub-optimal
results at great expense.
At the heart of the issue is the sheer complexity of each
commodity and its supply chain, rules, regulations,
trading instruments, quality attributes, pricing and
so much more that essentially differ for each user
company. The best fit CTRM for any concern is always
going to be the custom-built one and despite calls for
standardization of business processes, instruments,
and so on, it is the very differences that are often
the basis for competitive advantage. In short, CTRM
is not a packaged software market even though it
masquerades as one! However, things are changing
and there is a growing realization of the need for
more standardization to reduce costs and increase
efficiencies, but it is unlikely that standardization will be
enough to significantly reduce the CTRM conundrum.
Meanwhile,theindustrycontinuestomorphandchange
in a myriad of ways. One change has been the reduction
of large, top-tier entities in commodities. As the large
trading banks exited, utility businesses split to better
manage fossil assets, and after the merchant collapse,
the number of very large traders, in particular, has
diminished as the number of small, nimble, and niche
commodity firms seems to have grown exponentially.
There are still mega commodity firms around but
proportionally there are a higher number of smaller
firms. These smaller firms may be focused on a niche
play in a specific market and commodity, or they may
be formed by disgruntled traders who grow weary of
too much control at larger firms. Whatever the reason,
these firms exist, and they too need CTRM solutions.
Today, the need to use a CTRM solution for any firm
engaged in buying and selling commodities has
never been more acute. Stakeholders now demand
that proper controls are in place and these are
expected to be delivered at least in part via computer
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4. Instant CTRM in the Cloud A ComTechAdvisory Whitepaper
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systems. Lending banks expect these controls and
are increasingly reluctant to lend money to firms with
commodity exposures unless they can be convinced
of adequate controls and risk measures. Regulators
have also upped the ante with a set of comprehensive
regulations around trading that requires trade reporting,
position limit monitoring, and trade surveillance. The
regulators have teeth and have fined both large and
small fines for non-compliance – often huge sums.
Beyond this, the recent lockdowns and work-from-
home environment have also driven home the need for
safe and reliable CTRM, and related software, to ensure
business continuity. It has also put security, workflow
and approvals, and performance in the spotlight. These
days, even the smallest trading firm really should be
using a CTRM.
In the last few years, the term ecosystem has been used to offer an alternative in which smaller,
more-specific solutions could be adopted for vertical and/or horizontal purposes and knit
together via APIs or some other form of interfaces – often in the cloud – to form a nimble and
adaptable solution.
CLOUD AND ECOSYSTEMS
The idea is that by breaking the complexity of CTRM
down into bite-sized chunks, that complexity can be
at least reduced, and each component can deliver a
specific function very well. The user may then select
these and assemble a solution that is nearer to the fully
custom solution they need but at an affordable cost.
And therein lies the key to CTRM software. It is not a
one size fits all software category and as stated above,
it is not a true packaged software candidate at all.
In the past, CTRM solutions were delivered as
monolithic mountains of code. Configurability was built
to help make them usable by the broadest audience
possible thus making them a commercial proposition
for the vendor yet, for all that configurability, they were
horrendously complex. That complexity manifested
itself as subpar implementations that did not deliver the
anticipated business benefits and as unforeseen costs.
In particular, trying to keep up with industry changes
through new software releases could become an
expensive and time-consuming nightmare, and often,
the real expense was to be found in the interfaces
between CTRMs and other systems – of which there
are a lot.
However, as we reach the third generation of CTRM
solutions, the new technologies, design approaches,
and experiences of building this sort of software have
started to manifest several possibilities. That CTRM
can be made nimbler and more adaptable through an
ecosystem approach is one. Another is the pay-as-you-
go model of payment that reduces barriers to entry
for smaller firms. The idea of instantly available and
multi-tenanted solutions in the cloud is also worthy of
consideration.

5. Instant CTRM in the Cloud A ComTechAdvisory Whitepaper
© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 5
One of the largest costs with CTRM software remains deployment and implementation. So, is it
feasible or even possible to create solutions that really can be used more or less straight away?
THE INSTANT CTRM?
Imagine signing up for a CTRM solution online with
a credit card and entering your first deals just a few
minutes later? Imagine upgrades delivered seamlessly
by the vendor that cost nothing and have no impact on
the business save a little training time? In the world of
complexity and cost that has been the CTRM software
category, this seems unreachable. Yet, in the world of
microservices, services, APIs and cloud, it isn’t that far
away.
One vendor that set out with such a vision in mind is CTRM Cubed. Based in the midlands of
the UK, Simon Piercy has been quietly working with a small team on building such a solution
having learned from trying to implementing most of the older CTRMs in his IT role in the industry
and then having successfully built a solution as a vendor. The vision is simple – TradeCube, the
solution, ‘is an instant setup, pre-configured self-service CTRM platform, ready for use out of the
box. No long-term contract, no exorbitant fees, no fuss. Just sign-up and use.’
TRADECUBE FROM CTRM CUBED
INSTANT CTRM IN THE CLOUD?
To achieve the vision, CTRM Cubed started with a
more limited vision of scope where they wanted to start.
TradeCube handles the trade and risk management
side of CTRM, and it uses microservices and services to
break the problem into manageable chunks. Designed
as a modern cloud-based E/CTRM, it is multi-tenanted
software as a service (SaaS) built on web services and
APIs. It is available on any device and CTRM Cubed say
it is scalable from a single to thousand users. Hosted
in MS Azure, the solution offers high availability,
redundant storage, replicated servers, and rolling
updates to users. Using a pre-configured version allows
the software to be up and running for users instantly
with no need for technicians or implementation
consultants. By publishing its APIs, CTRM Cubed
already has other firms building other applications
designed to seamlessly integrate with TradeCube fully
available from its Appstore. To enable the instant use
promise, TradeCube has loaded over 100,000 pre-
configured data items, such as parties, commodities,
products, and venues, and the administrator can easily
set up additional environments, add new users, perform

6. Instant CTRM in the Cloud A ComTechAdvisory Whitepaper
© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 6
backups and restores, all at the click of a button. And
yes, you can pay by credit card!
The idea is for CTRM Cubed to focus on delivering
a trade and analytics solution and provide an
environment for partners and even users to develop
and sell additional components perhaps in logistics or
other market and venue connectors and so on. Being
multi-tenanted in the cloud, much attention was paid
to security, scalability, and technology to ensure that
the solution would offer a secure and stable solution
that was available at all times. By building on container
technology, using webhooks and web services for
integration, the solution meets that promise. It also
includes several functions and features that aid users
like being event-driven (re-calculating real-time data
based on events like new trade capture, new price,
etc.), a scheduler, and a file watcher to provide trading
and cube analytics.
For many smaller traders and firms with commodity exposure, TradeCube offers a fast and
cost-effective way to be on a commercial platform that offers the functionality, audit trails, and
controls that stakeholders now demand.
WHO WILL BENEFIT?
However, it also offers larger businesses something
that can be instantly deployed in remote office locations
– something that can offer business benefits from day
one and yet be replaced later if so desired. CTRM
Cubed also claims the kind of scalability that would
allow very large entities to adopt the software as part
of an ecosystem approach and that value should not
be overlooked as the industry starts to go down the
ecosystem route.

7. Instant CTRM in the Cloud A ComTechAdvisory Whitepaper
© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 7
After more than two decades of less-than-optimal
implementations at great expense that are then
difficult to replace, CTRM software is moving into new
territory where the promise of cost-effective, scalable,
and adaptable solutions based around ecosystems of
cloud solutions has arrived. Will it be the next step in
the evolution of CTRM? CTRM Cubed is not alone in
pursuing this vision but it is amongst the first movers. It
is still early days, but the approach appears compelling
especially initially for the smaller firms that in the past
relied on spreadsheets and paper and are now being
forced to demonstrate more control. Here, this sort of
approach seems to be logical and perhaps unbeatable?
SUMMARY

8. ABOUT CTRM CUBED
CTRM Cubed Ltd is an innovative software provider,
specialising in Energy and Commodity Trading and
Risk Management (E/CTRM). CTRM Cubed’s
TradeCube® Software-as-a-Service platform brings
E/CTRM into the modern era, underpinned by the
very latest in scalable cloud-native architecture.
Delivered using Web Services, APIs and connected
technologies, the company is evolving the sector
from monolithic solutions to a dynamic ecosystem
of fast, interconnected services. Combining trade
and portfolio management with an innovative cube
analytics platform, trading data and metrics are
brought to life with integrated charting and
dashboards.
CTRM Cubed breaks the mould of traditional “years-
long” implementations; setup is in minutes, all
operated without the need for IT infrastructure,
hardware, or technical expertise. The platform is
offered with fair, transparent per-month, per-user
pricing, backed up by a reliability guarantee.
Privately owned, managed, and funded by industry
experts with decades of experience in the sector, the
company is headquartered, in Warwick, England.
https://ctrmcubed.com

9. ABOUT
Commodity
Technology
Advisory
LLC
Commodity Technology Advisory is the leading analyst organization covering the ETRM and
CTRM markets. We provide the invaluable insights into the issues and trends affecting the
users and providers of the technologies that are crucial for success in the constantly evolving
global commodities markets.
Patrick Reames and Gary Vasey head our team, whose combined 60-plus years in the energy
and commodities markets, provides depth of understanding of the market and its issues that is
unmatched and unrivaled by any analyst group.
For more information, please visit:
www.comtechadvisory.com
ComTech Advisory also hosts the CTRMCenter, your online portal with news and views about
commodity markets and technology as well as a comprehensive online directory of software
and services providers.
Please visit the CTRMCenter at:
www.ctrmcenter.com
19901 Southwest Freeway
Sugar Land TX 77479
+1 281 207 5412
Prague, Czech Republic
+420 775 718 112
ComTechAdvisory.com
Email: info@comtechadvisory.com