Energy market price discovery platform Tallarium secures $1.6m investment from XTX Ventures and Reciprocal Ventures
- Investment will support ongoing product development for Tallarium’s energy market data and pricing platform
- Brings the total funding raised to $7m
Tallarium, providers of unique trade analytics for price discovery in off-exchange energy markets, today announces that it has secured additional investment from XTX Ventures, the venture capital arm of leading algorithmic trading company XTX Markets, and Reciprocal Ventures, a venture capital firm.
The companies have provided a combined total of $1.6 million of new investment in Tallarium to fund Tallarium’s ongoing expansion as the ‘single source of truth’ for pricing in the opaque energy trading markets. This brings the total raised by Tallarium to date to $7 million.
Tallarium is helping to digitise energy trading markets
Based on the energy clearing house and exchange data from ICE and CME, as well as Tallarium’s own calculations, over 90% of energy contracts, representing over $7 trillion per annum, are traded off-exchange (actively transacted via messenger chat and over the phone). The industry has been one of the slowest to digitise, with energy traders still using Microsoft Excel as the primary tool used to record and analyse data. Some of the world’s largest energy firms are forced to rely on these highly manual methods for risk management and valuation processes.
Using proven, robust and reliable methodologies, Tallarium’s platform automatically gathers and structures pricing information from broker chat messenger and voice conversations to create the industry’s first, definitive price discovery platform for the entire market. Its advanced data analytics provides a step-change in off-exchange energy trading, making manual data-entry and analysis obsolete, increasing efficiencies and helping traders to maximise the potential of every trade.
Commenting on the investment, Stanislav Ermilov, Founder and CEO of Tallarium, said: “Tallarium will help bring all the benefits of digitisation to energy traders, such as centralised pricing and access to increased liquidity, without asking traders to change the way they trade. Our technology empowers energy traders to trade more profitably by capturing more opportunities and helping them to manage and respond to market risk more effectively.”
He added: “We’re delighted to have secured the backing of key strategic partners such as XTX and Reciprocal Ventures, who bring with them deep domain expertise in data and capital markets. They will contribute their experience and invaluable advice to our team as we continue to grow and this additional funding will allow us to accelerate our development and scaling even further. We look forward to a long and successful relationship with our new investors.”
Mike Irwin, COO at XTX Markets, said: “As innovators in trading ourselves, we are always looking for partnership and investment opportunities in exciting companies making a real contribution to financial markets. We were impressed by Tallarium’s technology, its people and its focus on solving a real problem in energy market trading, by providing definitive product pricing information where none has existed before.”
About Tallarium (www.tallarium.com)
Tallarium gives traders an edge by providing a ‘single source of truth’ for price discovery in off-exchange markets, offering energy traders the solutions and insights required to access more liquidity and maximise the potential of every trade.
Using proven, market-leading and reliable methodologies, Tallarium’s True Value Discovery (TVD) engine gathers fragmented pricing data from trader chat messenger and voice conversations to build the off-exchange energy market’s only definitive price discovery platform that works in real time.
Collating millions of data points across hundreds of products and spanning the views and sentiments of thousands of data sources, Tallarium enables traders to instantly grasp pricing dynamics within both their broker network and the wider market.
Tallarium’s SaaS offering makes data and analytics available to energy traders via Tallarium web, desktop and mobile device apps, as well as APIs. Built-in collaboration solutions allow the best energy product pricing data available anywhere in the market to be shared, maximising trading performance across entire teams.
Tallarium services a significant number of the top 30 most active players in their respective off-exchange energy product markets. Some of the largest energy companies in the world rely on Tallarium for energy market pricing data and analytics to enhance their trading outcomes.