Tallarium, a provider of unique trading analytics for determining prices in over-the-counter energy markets, announced the attraction of additional investments from XTX Ventures, the venture capital division of the leading algorithmic trading company XTX Markets, and the venture capital firm Reciprocal.
In total, the companies sent investment funds for $ 1.6 million. This money will be spent on expanding the activities of Tallarium and establishing the firm as the only source of truth for pricing in opaque markets where energy resources are traded. Taking into account previously attracted investment funds, the total amount of financing received by the company is $ 7 million.
Tallarium is currently trying to digitize the energy resources trading markets. Based on data from the energy settlement center and exchange data from ICE and CME, as well as on Tallarium’s calculations, more than 90% of energy contracts worth more than $ 7 trillion per year are traded off-exchange (via chat in messenger and by phone). The industry is digitizing very slowly, energy traders still use Microsoft Excel as the main tool used for recording and analyzing data. Some of the world’s largest energy companies have to rely on these highly manual risk management and assessment methods.
Tallarium automatically collects and structures price information from the broker’s chat and voice conversations. Advanced data analytics provides a step-by-step change in over-the-counter energy resources trading. Manual data entry and analysis are moving into the category of obsolete mechanisms obsolete.
Stanislav Ermilov, founder and CEO of Tallarium, said that the company will help provide energy traders with all the benefits of digitization, such as centralized pricing and access to increased liquidity. He noted that the new solutions allow for more profitable trading and prompt response to market risks.
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