The Future of Energy Trading

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Phoebe Henry
5 years ago
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1 A TRAYPORT BUSINESS The Future of Energy Trading Digital Survey Results, Tel: +44 (0)

This digital survey was conducted by Contigo online in March 2018. Anonymous responses from individuals working within the energy sector have been collated to form the results.

Job Roles of Respondents Other Originators Procurement Senior Manager IT Manager Consultant Portfolio Manager Back Office / Accounts Analyst Energy Trader 0% 5% 10% 15% 20% 25% 30% Q2 Which of these

2 This digital survey was conducted by Contigo online in March Anonymous responses from individuals working within the energy sector have been collated to form the results. Q1 Which one of these best describes your job role? Job Roles of Respondents Other Originators Procurement Senior Manager IT Manager Consultant Portfolio Manager Back Office / Accounts Analyst Energy Trader 0% 5% 10% 15% 20% 25% 30% Q2 Which of these best describes the type of organisation you work for? Description of Organisation for Respondents Energy Generator Energy Wholesaler Energy Retailer Industrial Consultancy Other 0% 5% 10% 15% 20% 25% 30% UK Germany Austria Nordic Region Benelux Region France Italy Europe Americas Q3 Where are you based? Country of Respondents Other 0% 5% 10% 15% 20% 25% 30% 35% 40% Other 10.71% 6 Originators 5.36% 3 Procurement 3.57% 2 Senior Manager 16.07% 9 IT Manager 10.71% 6 Consultant 14.29% 8 Portfolio Manager 3.57% 2 Back Office / Trading 3.57% 2 Accounts Analyst 3.57% 2 Energy Trader 28.57% 16 Energy Generator 12.5% 7 Energy Wholesaler 23.21% 13 Energy Retailer 26.79% 15 Industrial 1.79% 1 Consultancy 21.43% 12 Other 14.29% 8 UK 39.26% 22 Germany 16.07% 9 Austria 7.14% 4 Nordic Region 1.79% 1 Benelux Region 3.57% 2 France 3.57% 2 Italy 3.57% 2 Europe 17.86% 10 Americas 1.79% 1 Other 5.36% (0) sales@contigosoftware.com Page 2

(Please choose four) Describe the Energy Sector Today Prediction for Greatest Impact on Energy Trading, next 5 Years Spread-sheets are not sufficient Hard to understand technology such as Blockchain

3 Q4 In your opinion, which of these describe the energy sector today? (Please tick all the statements you agree with) Q5 Which of the following do you think will have the greatest impact on energy trading in the next five years? (Please choose four) Describe the Energy Sector Today Prediction for Greatest Impact on Energy Trading, next 5 Years Spread-sheets are not sufficient Hard to understand technology such as Blockchain and Big Data Trading businesses do not have systems in place to meet demands Changes in the energy sector create exciting opportunities Hard to keep up with the pace of change 0% 10% 20% 30% 40% 50% 60% 70% 80% The move to automated trading Systems moving to Cloud / SaaS The use of Blockchain Increased Renewable generation Increased Intra-day Trading The use of Big Data and Analysis / Modelling Electricity Storage advances The increase in Prosumers and aggregation AI Machine learning Market Coupling 0% 10% 20% 30% 40% 50% 60% 70% Spread-sheets are not sufficient to manage the demands of the energy sector 69.64% 39 With technology moving fast, many in the energy sector are finding it hard to 73.21% 41 understand technology such as Blockchain, Cloud and Big Data Many trading businesses do not have the systems in place to meet all of the 55.36% 31 demands of the changing energy market place Changes in the energy sector create exciting opportunities 71.43% 40 It is hard to keep up with the pace of change with regulations, trading 55.36% 31 practices and the generation mix The move to automated Trading 64.29% 36 Systems moving to Cloud/SaaS 25% 14 The use of Blockchain 28.57% 16 Increased Renewable Generation 64.29% 36 Increased Intra-day Trading 42.86% 24 The use of Big Data and Analysis / Modelling 46.43% 26 Electricity Storage Advances 60.71% 34 The increase in Prosumers and Aggregation businesses 41.07% 23 AI Machine Learning 25% 14 Market Coupling 1.79% (0) sales@contigosoftware.com Page 3

(Please select any relevant) Predicted Changes to Energy Traders over the Next 5 Years Predicted Changes to ETRM Systems in Next 5 Years More involved in monitoring trading activity Required to write

4 Q6 If you had to predict the changes to the role of energy traders over the next five years, which of these would you agree with? (Please select any relevant) Q7 Over the next five years, what changes do you think you may see in the software/systems used for energy trading? (Please select any relevant) Predicted Changes to Energy Traders over the Next 5 Years Predicted Changes to ETRM Systems in Next 5 Years More involved in monitoring trading activity Required to write Code Become more specialised in certain areas No Change 0% 10% 20% 30% 40% 50% 60% More systems hosted in the cloud Accessible from tablets and mobile devices Organisations may use a mix of Best of Breed More organisations will opt to buy not build Increased connectivity of difference systems Increase in automated trading 0% 10% 20% 30% 40% 50% 60% 70% 80% Energy traders role will change to become more involved in monitoring 62.50% 35 trading activity rather than executing trades Energy traders will be required to write code for the customisation of 33.93% 19 trading systems There will be a requirement for traders to become more specialised in 55.36% 31 certain areas No change to the energy trading role 8.93% 5 More systems will be hosted in the Cloud / SaaS 62.5% 35 More systems will be accessible from tablets and mobiles devices 50% 28 Organisations may use a mix of smaller best of breed systems, rather than one 46.43% 26 system for managing all energy trading More organisations will opt to buy trading systems rather than build them 32.14% 18 There will be increased connectivity of different systems within an organisation 76.79% 43 There will be an increase in automated trading 67.86% (0) sales@contigosoftware.com Page 4

5 Q8 Which current or future features of energy trading software /systems would you see as most important for energy trading over thenext five years? (Please select one option) Features of ETRM Expected to be Most Important over the next 5 Years Data in real-time Fast Implementation Capture and report intra-day Automation of intra-day trading Flexibility to tailor system Risk management Robust and auditable Management of Big Data Open API AI Machine learning Cloud / SaaS Data, reporting and analytics provided in real-time 28.57% 16 Fast implementation 3.57% 2 Ability capture and report on intra-day trading activity 3.57% 2 Automation of intra-day trading 8.93% 5 Flexibility to tailor system to meet business needs 8.93% 5 Sophisticated risk management embedded in the trading 7.14% 4 system Robust and auditable process to help ensure compliance 3.57% 2 with legislation Management of Big data analytics integrated with ETRM 7.14% 4 Open API ability to easily integrate with other systems 16.07% 9 AI and Machine Learning 8.93% 5 Cloud / SaaS 3.57% 2 0% 5% 10% 15% 20% 25% 30% Summary In this challenging and fast-changing energy market everything is pointing to the importance of having the most appropriate technology and systems to build agility and efficiencies and to minimise risk. Businesses should review their business models, digital platform and processes, looking for increased efficiencies and opportunities. The future is likely to see a divergence of fortunes in energy trading, with those businesses that have agility and efficiencies built into their systems being able to take advantage of increasingly sophisticated software and insights to compete in a changing energy market. Now is the time for businesses that are not future-ready to act. A total of 56 people completed the survey (0) sales@contigosoftware.com Page 5

6 About Contigo We have been developing Energy Trading and Risk Management (ETRM) solutions for over 10 years. Our software is designed and supported by energy industry experts with a wealth of experience working in organisations across energy generation, wholesale and retail. We have successfully supported both established and emerging businesses to grow across Europe. Our software supports European energy trading and are designed to be seamlessly integrated. Contigo is a business unit of Trayport. Trayport is a leading provider of energy trading solutions to traders, brokers and exchanges worldwide. Trayport Holdings Limited is a wholly-owned subsidiary of TMX Group Limited (TMX Group). For more information about TMX Group and terms of use, please visit: (0) sales@contigosoftware.com Page 6

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