RESEARCH AND REPORT

DISRUPTIVE
TECHNOLOGIES
A 2021 UPDATE

Sponsored by
CONTENTS
Introduction and Background |3
Survey Results |4
Disruptive Technologies in the Commodity Markets |13
Artificial Intelligence and Machine Learning | 14
Robotic Process Automation (RPA) and Automated Workflow |18
Blockchain |21
Will Blockchain Break Through? |28
Augmented and Virtual Reality |28
Disruptive Technologies and the Impact on CTRM and CM |31
About Invensoft |33
About Kyos |34
About Commodities People |35
About Beacon |36
About Commodity Technology Advisory LLC |37

© Commodity Technology Advisory LLC, 2021, All Rights Reserved.

INTRODUCTION AND BACKGROUND
In 2021, Commodity Technology Advisory LLC (ComTech) published its first Disruptive
Technologies research report (that version kindly sponsored by FIS). Technologies covered in
the study scope included cloud/SaaS, Artificial Intelligence (AI), Machine Learning (ML), big
data, automation and blockchain, amongst others. The findings were supported by an industry
survey that led to the broad conclusions that cloud/SaaS and data management initiatives were
in flight. AI, ML and automation seemed to be prepping for an explosion of use while blockchain
was overhyped and lagging. Over the last couple of years, our general market observations as
analysts have largely confirmed the results of the research.

In early 2021, ComTech decided that the whole topic in the commodities industries?
was worthy of a revisit as a result of many changes
and trends in the industry and so began a new Digitalization has been an ongoing trend within the
project. This report is the result of those efforts, and commodities complex for several years now and
it was kindly sponsored by Invensoft, Kyos, and it has been accelerated by many of the business
Commodities People. drivers noted above; and particularly so recently
with the requirement for commodities companies
The entire commodities complex is undergoing to move to a work from home model – one that has
significant change, driven at least in part by COVID exposed any number of process and technology
and the resulting lockdowns. Other drivers for change weaknesses. In turn, digitalization has driven
like geopolitics, regulatory pressure, and increasing continuing investments in various technologies such
emphasis on cost containment and improving as cloud, data management, workflow, automation,
efficiencies in the physical side of the industry and AI and ML. Innovations associated with digitalization,
commodity supply chains, have been sharpened by along with the other noted trends, also appear to
issues such as climate and sustainability. In turn, more often be catalyzed by disruptive technologies. For
environmental, social and governance (ESG) aware example, we now see AI being used to enhance
investors and consumers are also demanding and/or commodity price forecasts, which has in turn induced
driving changes. Trade finance is also included in this several new providers leveraging AI to enter the
mix of influences with the exit of many banks from the price forecasting market. Automation facilitated by
space and the increasing reliance on innovative non- advanced technologies, particularly robotic process
traditional sources of financing. Just how were these automation (RPA), is also being adopted by vendors
ongoing changes, challenges and trends impacting and users, particularly to help guide and control
the application of disruptive and other technologies processes via a distributed/home-based workforce.

© Commodity Technology Advisory LLC, 2021, All Rights Reserved.

 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

What impacts have these trends had on technology of, these various technologies? These were the
adoption and investment? What are the use cases questions our survey and research asked.
that motivated the investment in, and adoption

SURVEY RESULTS
ComTech conducted the survey component of this study between February 2021 and early June
2021 using a web-based tool. Survey responses were encouraged through email, blog and word
of mouth efforts. ComTech also partnered with Commodities People to include an invitation to
participate in the survey as industry players signed-up for their Commodity Trading Week event.

In all, the disruptive technologies survey had 63 valid

participants with just over half of those being in Europe
(Figure 1). Both the North America and Asia-Pacific
regions were also quite well represented.

Although technology providers were the largest group

of respondents (46%), end users of technology were
also well represented (38%), with the remainder
being consultants and systems integrators. The end
users also had diverse backgrounds, with respondents
representing an array of market segments including
producers, consumers, banks and funds, and
merchants (Figure 2).

When asked about how various technologies might

impact commodities and commodity trading over the
next 12-24 months, it was apparent that cloud and
SaaS may already be in the rear-view mirror. With
these technologies having been broadly adopted having the largest impacts. Data management and
and deployed across the industry, it’s perhaps not data mining, again somewhat mature and widely
surprising that these technologies would be seen as accepted technologies, follow closely behind in levels

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 4

 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

of expected impact. AI and ML also ranked highly

as even though they are still somewhat early in their
adoption phase, several practical use cases have
emerged for these technologies. By comparison,
blockchain, despite much hype and investment over
the last 5 plus years, remains some ways off it seems,
ranking only slightly higher than opensource software
and virtual/augmented reality (Figure 3). Workflow
and microservices ranked somewhere in the middle;
however, if you combine ‘significant’ and ‘some’ users shows little change versus the larger sample,
impact responses, then they also show potential in our except for Microservices, which drop further down the
respondent’s opinions. list.

Looking specifically at the responses of just the end

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

By comparison to the earlier 2018 study, it seems more

respondents view all the technologies as having a more
significant/deeper impact now, yet the relative ranking
of those technologies remains nearly identical. AI and
ML are seen as more important in this study and, as
we predicted in 2017, appear to be front and center
now in terms of attracting both interest versus the other
newer/emerging technologies.

In terms of investment plans (Figure 6), cloud and

SaaS dominate with 84% of respondents saying their
firms expected to invest in those technologies. AI and
ML have moved up into the next place with almost
60% expecting to invest, while 32% expect to invest
in blockchain. These numbers remain pretty much
identical when just the end user group of respondents
is analyzed. However, comparison with the 2018 results
is interesting.

Comparing the results from the current survey to

those from 2018 indicates that investments in cloud
and/or SaaS (74% in 2018 vs. 84% in 2021) and
microservices (24% in 2018 vs. 41% in 2021) are
expected to increase. Investment in areas like AI and
ML and opensource will remain somewhat consistent
while investment in blockchain (46% in 2018 vs. 32%
in 2021), data management (66% vs. 56%) and VR/
AR (9% vs. 5%) might be expected to decline.

Blockchain appears to be struggling even more

in 2021 than it was in 2018 in the opinions of the
respondents. When asked where blockchain might
succeed commercially (Figure 7), there was little
confidence of its commercial application in any of

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 6

Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

the tested areas except perhaps custody transfer /

ownership transfer.

Equally, using social media data draws little interest

for most respondents (Figure 8), with the number of
those who see value in mining social media for market
indications having dropped from 39% in 2018 to 25%
in 2021.
 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

Referring to where disruptive technology will emerge

from among the various types of technology providers
(Figure 9), most expect it to emerge from the cloud-
based AI/ML vendors (Azure, AWS, etc.) and
technology platforms that facilitate digitalization of
deal negotiation, contract management and related
business processes. ERP providers are seen as
the least innovative in bringing new technologies to
market, trailing behind the other low-ranking segments,
including global IT firms (IBM, Oracle etc.), industry
consortia (Figure 9) and CTRM providers.

When it comes to which types of firms are at the

most risk of being disrupted by these emerging
technologies, the respondents pointed to CTRM and
ERP software firms as those most likely to impacted
(Figure 10).

Finally, as AI and ML are generating growing interest

across the commodities trading space, we asked where
these technologies might be applied for the most
impact (Figure 11). Perhaps not surprisingly, “Data
Analysis” is cited as the number one area for the use of
this technology. Asset Modeling, Price Forecasting and
to a lesser degree, Risk Management, are also all seen
as areas for potential use.

Commodities People often obtain ad hoc survey showed that almost half of those responding felt AI to
data from its conference sessions audience as be a game changer and almost 1/5th was most excited
well as collect data during registration for its by its potential. Though blockchain excites with its
conferences. It’s data also shows that while AI and potential (26% in that same poll), almost half of another
ML seem to be seeing rapid deployment across poll from the same conference suggest that it hasn’t
several use cases, blockchain has not yet fully yet shown its business case convincingly in commodity
emerged commercially. A CTW tradeshow poll trading. These data points do help reinforce the trends

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 8

Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

suggested by our own data. investment, though there are hints that this focus is
lessening somewhat. Viewed another way, perhaps
In summary, the 2021 survey results show only subtle there is an on-going shift from organizing data to
yet arguably significant differences to the previous attempting to extract value from it?
survey conducted in 2018, but those differences are
informative. Cloud and SaaS seem to be the major Of course, at any point in time, each of these trends is
focus for most firms and these technologies are at a different level of maturity or adoption within any
clearly being broadly accepted within all sides of individual company or technology vendor. While some
the industry. It could be argued that digitalization innovative vendors have already fully moved to a “true
should be preceded by data management; elevating cloud” platform, others for various reasons are only in
data mining/management as a significant area of the early staging of architecting their products to run

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

effectively in a cloud environment. The same is true off from broad practical application in the opinion of our
with respect to end users. Though each respondent survey respondents. Indeed, it may be further off now
may be at different points in the adoption curve for that it was thought to be in 2018. This is indicated not
any technology, the cumulative data does provide a just in the lower percentage of respondents planning
view of where the industry is generally with respect to invest in blockchain in our most recent survey, but
to the technology adoption curve for the technologies also by the apparent lack of use cases to support its
examined. As such, the data does suggest that we may deployment. Based on levels of investment to date
be close to the peak of cloud adoption and perhaps and the results achieved, it seems that blockchain will
slightly past the peak in terms of investments in data be likely be used initially to securely record certain
management. types of transactional data via smart contracts and
in managing custody transfer. We anticipate that
AI/ML and automation appear to still be prior to the blockchain, given its inherent latency in capturing and
peak of the technology adoption curve and can be recording transactional data, will remain somewhat of
expected to draw increasing levels of investment. a niche technology deployed in a small percentage
These technologies are finding some use in practical of applications supporting after the fact recording of
business applications and new use cases are commodity trading and management activity in the
emerging. Our research indicates this is driven in near to mid-term future.
large part by the need for better control of a remote
workforce, and the massive growth in the volume of Aside from its established (though perhaps improving)
data generated and consumed by industry players latency issues, an additional aspect of blockchain
and the need for new tools/applications to extract that will likely hinder its uptake, is the need to
actionable insights from it. AI and ML empowered establish process rules, standards, and governance
Robotic Process Automation (RPA) tools are also for its use. In order to gain broad acceptance as an
finding utility in allowing machines to manage routine enabling technology or platform, this often requires
work and process tasks, which in turn frees humans the creation of a consortia of industry participants
to focus their expertise on problematic exceptions. to own and operate the initiative. Anyone familiar
Though use cases in commodity trading are still with the history of commodities knows very well that
somewhat limited in their scope, the early results consortia, standards and working together do not have
from these efforts show enough promise and return a particularly successful track record in this industry,
on investment that we do expect to see increasing particularly as the markets have increasingly become
interest and investment in these areas. more global in their reach. As indicated in Figure 9, the
survey respondents appear to echo this sentiment as
Blockchain, hyped and touted as “the next big thing” they do not consider consortia to be among the leading
for the past 5-plus years, still seems to be some way candidates for promoting disruptive technologies.

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

Given that most blockchain initiatives to date in the solution providers. The availability of these platforms
commodities industries have been driven via consortia, that have embedded these technologies seems to be
their lack of broad success might be more a result of driving additional adoption as opposed to users having
their inability to overcome competing agendas in terms to invest in the basic technologies and develop their
of business processes and proposed standards, and own solutions from them.
less so any shortcoming with the technology itself.
Other technologies like VR remain on the edge of
It is also interesting to examine perceptions as to where perception it would seem; yet our research indicates
the impetus for adoption of disruptive technologies is there does seem to be evidence that augmented reality
coming from. Our respondents point squarely to those is getting closer to practical usage as there are a few
technology vendors that are focusing on cloud delivery emerging use cases that will be covered later in this
of AI and ML tools, and to data and data management report.
 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

In summary, it appears the drive to digitalize, supported large companies. Other examples of vendors that have
by the broader trends of work-from-home, and the need moved from being providers of traditional monolithic
for greater efficiencies and improved control are driving applications to providers of cloud-enabled ecosystems
people’s perceptions of disruptive technologies. This in of specialized applications (or apps) include Eka
turn makes investments in cloud, automation, AI and and Gen10. Even SAP has adopted the idea of an
ML, improved data analytics tools, and (based on events ecosystem of web-based apps and other more recent
in 2021) security more attractive or even pressing. market entrants, including Previse Systems and
Further, when it comes to security considerations, CTRMCubed, have made this their initial go-to-market
perhaps blockchain will have a future role by helping to model. Still others, such as Beacon, have moved into
improve trust and verification, particularly in sensitive the space with a platform model which allows users to
areas such as critical infrastructure. leverage a sophisticated trading data model to build-out
those capabilities specific to their unique mix of assets,
Of course, each technology has its own adoption processes, and markets.
curve and there are early adopters and laggards
across the industry for each technology. However, It should be noted that despite the growing availability
the overall push for adoption of these emerging and and adoption of these emerging technologies, the
advanced technologies does appear to be catalyzing reality is that commodity firms are often laggards overall
the movement away from monolithic systems to when compared to other markets such as financial
ecosystems comprised of numerous specialized services or those that are more consumer oriented.
applications; and, from traditional on premises to Given the complexities of producing, managing,
SaaS or at least subscription priced. For example, processing, trading, marketing and transforming
SAP’s S4/Hana and Industry cloud approach is a commodities, it is perhaps understandable that there
somewhat dramatic shift for many market participants is still a long way to go in terms of digitalization and
who have relied on the company’s traditionally installed broad adoption of these technologies in this space; and
ERP solution and may herald the ultimate end to any why, for now at least, Excel remains the tool of choice
continuing resistance to cloud solutions for mid and for many.

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

DISRUPTIVE TECHNOLOGIES IN THE

COMMODITY MARKETS
As the results of our survey indicate, there continues to be significant interest and investment
in many new and emerging disruptive technologies. Though we have included Cloud and SaaS
in our survey, the reality is that cloud-delivered software has now reached the point that it could
be considered mainstream and well past peak adoption.

Few companies operating today have not adopted technologies, such as Blockchain, have been available
and/or are using at least one or more cloud/SaaS to industry participants for several years, but their
applications - either by choice or by being essentially take-up as enablers of applications and processes in
“forced to” to operate effectively with industry everyday use by most industry participants have clearly
partners or service providers. Other of the examined lagged the expectations that were held when they were
 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

first introduced to the space. be an exhaustive listing of each vendor or product that
might fall under each technology category but is more
In this section, we examine the current state of the intended to provide a brief snapshot of the state of play
various disruptive technologies and use cases to which for each and provide a glimpse into how they are being
they are being applied. This is in no way intended to applied and a sense for their future potential.

Artificial Intelligence and Machine Learning

An excellent definition of AI can be found at IBM’s and ML can form a later component of the digitalization
website1 where AI is described as “enable(ing) activities taking place across the industry or, in an ad
computers and machines to mimic the perception, hoc mode, to help optimize specific activities, increase
learning, problem-solving, and decision-making efficiencies and reduce costs. In some instances,
capabilities of the human mind.” Machine learning is it is used as a first pass attempt to automate routine
also defined there as a branch of AI that “focuses on tasks or in data reconciliations, leaving exceptions for
applications that learn from experience and improve human intervention. The move to this form of exception
their decision-making or predictive accuracy over management has obvious benefits in time savings and
time.” Deep Learning is a type of ML in which the improved process efficiencies, as well as making
application teaches itself to perform a task with better use of staff’s time.
increasing accuracy without human intervention.
Although by no means an exhaustive list, the following
AI and ML use across the commodities complex seems use cases are among the most common examples
to have expanded rapidly in the last couple of years or of the deployment of AI in commodities that we are
so. Often combined with workflow or automation, AI currently aware of.

Short-term market forecasting

In fact, demand and price forecasting is rapidly images, and bringing together other data including
becoming an overcrowded market with suppliers of AI macroeconomic, econometric, production and
and ML enhanced short-term market data seemingly inventories data, and even social media data, can offer
cropping up everywhere. These vendors, by using AI enhanced price forecasts across several classes
various sensing imagery such as arial and/or satellite of commodities, ranging from agriculture to electric

1
https://www.ibm.com/cloud/learn/what-is-artificial-intelligence

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

power. Kyos also makes use of AI when tackling forward even in markets or commodities with data gathering
curve models and to develop good hourly shapes. limitations, artificial intelligence can be used to more
Indeed, this is where it started using AI initially. efficiently aggregate research, market sentiment, and
historical data to arrive at more accurate predictions
However, these AI enhanced forecasts do rely on for commodity prices, estimate inventory drawdowns,
advanced data collection and the availability of key forecast vessel movements/port activities and so on.
data will vary across the commodities complex. For
example, satellite images can be useful for mapping An example of one company using AI tools to develop
of mines and mine inventories for major metals improved forecasts is Enverus, the US-based data
commodities produced in open-cast mines. A similar services company. The firm is utilizing ML in their
approach can also be used in oil and petrochemicals short to mid-term price forecasting for power markets
and agricultural production. However, for other and has demonstrated the value ML enabled tools
commodities where the amounts produced and by apparently producing more accurate forecasts of
shipped are small, such tools may not offer much market prices than other sources and services during
utility, particularly if producers wish to conceal such the historic disruptions in the ERCOT power markets
information by hiding stock or otherwise refusing to in February of 2021.
cooperate with data collection efforts. Nonetheless,

Optimizing supply chains

Efficient movement of commodities through the specifics like need for refrigeration, for example,
supply chain is crucial to profitability and is an area of carbon footprint and so on,
application for AI that can show a quantifiable return • Automation of nominations, balancing and
on investment. An artificial intelligence enabled system scheduling using management by exception where
capable of consuming and optimizing real-time logistics most transactions are scheduled automatically
and pricing data can be a tremendous asset for these while a smaller number of more difficult to manage
companies, not only in managing supply chains, but transactions are identified for manual set up or
in helping make critical trading decisions. We have checking,
seen many examples of the use of AI and ML in this • Gaining insights and greater visibility into supply
area including but not limited to the following functional chains by using imagery of inventory and shipping
processes: routes/ports to predict potential issues and/or
• Route optimization taking into consideration opportunities, and
transport mode, locations, costs, time, commodity • Reducing the complexity around supplier

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

onboarding and collaboration using techniques like combine environmental, safety and governance (ESG)
anomaly detection, cycle time prediction and next- auditability with supply chains optimization around
best action recommendations. ESG impacts, including the carbon footprint of the
transaction. In this application, the Vasanda component
One good example we have seen of employing utilizes technologies to examine the ESG impact of
such technologies in supply chains is the initiative commodity production activities, for example, using a
by Polestar, Vasanda and Carbon Chain to variety of different data types including imagery.

Trading
The use of bots to perform automated and algo (NLP). The product is designed to understand
trading is now quite common particularly in real-time, commonly used trading language terms and, with its
intra-day power markets. However, this technology ML capabilities, learns quickly what types of deals a
has been in use across many other commodities and trader would typically perform. Admins and/or users
markets to optimize and automate trading activities, can also add specific language used on their trade
particularly in financially traded commodities. In fact, floor into its dictionary. Once configured, the internal
an entire subcategory of ETRM software has emerged dictionary picks up on keywords and phrases and
to help automate short-term power and gas trading, translates them into something that can be leveraged
particularly in the European markets, specifically the for other processes and applications.
software allows the use of AI/ML to trade automatically
and often also to optimize asset dispatch. Vendors like One advantage of incorporating AI solutions within
Volue (Likron), Trayport, eZ-nergy, FIS, Brady, commodity trading is to help increase productivity and
NavitaSoft, Igloo and others, are all marketing such save time through automated deal capture. Traders
solutions. These solutions have also begun to extend often use multiple forms of communication—sometimes
into scheduling and data visualization to support intra- simultaneously—to execute deals. Whether it’s through
day trading activities. Other vendors like Enegen messaging platforms, emails or phone calls, it can be
and eZ-nergy have gone further and innovated asset difficult for a trader to remember all the details of any
dispatch optimization solutions while others plan to do specific deal. AI enable NLP and ML systems can help
so. facilitate the process of gathering information from all
these sources and take appropriate actions based on
Venus Technology Ventures’ Mistro, created by this information.
former traders, is another example of an AI enabled
solution in that that uses natural language processing Techniques like NLP and ML can also be used to scan,

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

listen, and watch across communications, social media, In this latter use case, it can also be used to help fill out
and other sources to help provide early indications additional trade data based on an understanding of the
of market imbalances to inform trade decisions, and trader’s typical activities, reducing time spent entering
once acted upon, can help ensure more accurate trade data.
capture (many transactions are entered after the fact).

Other Areas
There are many areas that AI can, and has, been based on historical data. In the metals and mining
deployed in commodities. These include functions industry, Risk Edge designed and built Journal Entry
like predictive maintenance, asset management and anomaly detection solution using machine learning
optimization, inventory management, back office algorithms and a statistical filter.
for reconciliations, settlements, invoice matching,
and even in relatively obscure operational areas AI and automation have also been proposed and used
like optimizing fish feeding and improving crop to help users navigate through multiple systems or
management. SAP demonstrated a solution to screens to complete working on various business
reconcile invoices at a recent Commodity Management processes. This is particularly useful in entities that have
Forum that utilized AI, for example. deployed multiple different solutions to support their
operations and where managing a business process
Increasingly, we also see a trend to manage by exception requires complex systems knowledge. As previously
where processes are automated, and AI identifies those mentioned, it can also be used to help automate and
where human intervention is needed. Event-driven manage by exception complex or data voluminous
reporting, where events drive calculations, processes, processes and, help to migrate to event-driven solutions
reporting aided via AI, is also quickly gaining traction. whereby a specific event triggers a set of calculations
(e.g., valuation based on change in price).
Risk Edge has been developing AI based products for
some time and offers a couple of additional use cases. Customer service is another where AI is proving
For one Singapore-based Agri-business that operates valuable. For example, as early as August 2015,
in over 70 countries, and supplies food and industrial Shell launched an AI assistant for customers of its
raw materials to over 22,000 customers worldwide, lubricants business. Shell uses its avatars, Emma
Risk Edge delivered a web-based Planning & Analysis and Ethan, to help customers discover products
(FP&A) solution. Their product utilizes advanced ML using natural language. The Shell Virtual Assistant
algorithms to simulate its P&L and predict crop yields functions through an online chat platform through

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

the company’s website. Examples of information that integration of data across multiple applications used to
the system can provide include where lubricants are manage factory operations. AI would serve to establish
available for purchase, range of available pack sizes and the rules and models that would inform how data is
general information regarding the technical properties interpreted and offer opportunities for improvement in
of specific products. The company has also reportedly factory operations.
integrated a virtual assistant called Amelia into its
business model to respond to inquiries more efficiently Kyos also uses ML in areas like renewables and PPAs
from suppliers regarding invoicing and it believes the where it creates simulations for price with volumes of
future of AI in its industry will see a significant increase production using ML. It also uses ML techniques to
in unmanned and automated facilities. look at historical data and project that forward, finding
ML to be a robust method to handle large quantities of
Sinopec has a long-term plan to roll out construction of historical data efficiently.
10 ‘intelligent’ plants as part of an objective to achieve a
20 percent reduction in operation costs. In April 2017, AI and ML, especially combined with automation, do
Huawei and Sinopec announced a collaborative effort appear to be attracting a great deal of interest and
to design a “smart manufacturing platform.” AI is one of investment and we do expect to see it deployed with
eight core capabilities of the platform which will deliver increasing frequency across all areas of a commodity
a centralized method of data management and support business.

Robotic Process Automation (RPA) and Automated

Workflow
According to Investopedia, Robotic process automation settlement, scheduling, risk management and so on,
(RPA) refers to software that can be easily programmed ComTech hasn’t seen much evidence of its use beyond
to do basic tasks across applications just as human automations of various aspects of workflow via a few
workers do. The software robot can be taught a workflow select RPA based tools. However, RPA and automated
with multiple steps and applications. RPA software is workflows are taking off in many industries and as an
designed to reduce the burden of repetitive, simple example, an Accenture study2 determined that over
tasks on employees and is seen as having benefits such 43% of consumer-packaged goods (CPG) executives
as reduced costs and fewer errors. While there has indicate their firms already employ automation to cut
been significant interest in RPA for areas like financial costs and promote efficiency.

2
https://www.accenture.com/t20170926T105943Z__w__/us-en/_acnmedia/PDF-61/Accenture-Strategy-Consumer-Goods-Workforce-POV.pdf

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

Though anyone who has ever worked in a commodity application interoperability at the desktop and other
trading organization or business unit knows that such activities.
there are many examples of highly repetitive and
labor-intensive areas that might seem to benefit from Despite the fact the market continues to digitalize and
automation and RPA, often these processes are there is promise for additional adoption of automated
also prone to exceptions that would require frequent tools, Comtech’s research did not find massive uptake
human intervention. Nonetheless, it does seem that of RPA in the industry. Further, it seems that some
trading could be an area is ripe for automation and the of the early vendors interested in marketing to the
widespread use of software robots. space have now largely backed away as projects have
been sparser than anticipated. Despite that, advanced
The application of RPA first requires the business workflow solutions have found widespread adoption
process first be digitized. By looking for those highly usually as a part of other solutions like CTRM and CM.
repetitive and labor-intensive areas of the business Many CTRM and CM solutions now come complete
process, opportunities for RPA can be identified and with programmable and configurable workflow and
acted upon. While this may include specific trade office approvals, and it has arguably become a standard
business processes, it can also be used to automate feature of this class of software.

Settlement Processes
Settlement is an area where RPA has been used and apply RPA, gain experience with the concept, and
one case was noted in a press announcement in late prove the added value for Essent Finance,” said Pim
2017 by Pioneer (now Hitachi) to announce that Flink, Senior Controller at Essent. “This is pioneering
it had joined forces with its longstanding customer work, and our results have been very promising in
Essent, in a POC to apply RPA to settlement processes how it will increase our operational excellence.” This is
in the Retail Energy Management group. “Innogy’s now implemented and in production at Essent in the
Essent is focusing strongly on digitization in the energy areas of generating a settlement report and running
transition. For REM we accomplished that task with calculations where it saves manual work and frees up
TRMTracker, and its automation enables us to now workers to work on more creative activities.

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

Utility Uses
RPA is often used in what may be termed a utility-type is another area of use that is in fact like helping users
function – much like that presented above, where it can navigate between different systems in order to do their
be used to assist a user navigate many systems when jobs more efficiently. A similar use case is to extract
managing common business processes. Some of the data from paper forms using character recognition.
most common examples include,
Other areas that show promise for RPA and workflow-
• Web Site Scraping type tools are in a traditional back-office context as well
Energy and commodity firms have access to and as in core business processes, particularly in retail
require a lot of data from a variety of sources like price energy, such as:
and weather services, SCADA and operational feeds • Automated tariff adjustment calculation and posting
from various assets, inventory systems and so on. • Customer onboarding – checking and validating
Often much of this data is available on web sites but customer data
accessing that information on a regular basis can be • Fast meter take over using automatic termination
a time-consuming process. RPA software can be used with other providers
to scrape those web sites on a regular basis (such • Meter data and bill data processing – meter data
as finance-related trading sites, futures trading sites, validation
commodity trading sites, news media sites) and extract • Order management
specific information, summarize it and present it to • Complaint’s resolution
those who need it.
Given the impacts of the pandemic and the resultant
• Email processing work from home requirements, workflow and
Assisting with the processing of large numbers of automation has been increasingly used to provide an
incoming customer e-mail is an area where RPA can be extra level of control over key processes. Many CTRM
used to sort out the most common queries and route and CM vendors embed definable and customizable
them. It can also respond to the sender with an interim workflow/approvals within their solutions to help users
message of receipt. model and manage business process administration
within the solution. This is then used to ensure that
• Data Transfer critical activities are undertaken and completed by
Using RPA to transfer data between different solutions users through the solution.

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

Blockchain
There are new blockchain initiatives announced what was intended, but rather ended up as a
almost daily, yet it doesn’t appear that many commercial compromise between a standard and extensions or
applications that rely wholly on blockchain are yet in customizations. While there have been numerous
widespread use in the commodities industries. Further, calls for greater standardization in the industry,
and particularly over the last year, there have also and with increased frequency, the fact remains
been a growing number of more critical commentaries that standardization often gets in the way of
noting an apparently growing belief in the industry that differentiation and the potential for competitive
blockchain has been over-hyped. In all, the jury is still advantage in the industry. As a result, it is often
well and truly out as to if and when blockchain will find given lip service and does not, in the end, result in
its potential in energy and commodities. little more than some type of standard reporting.
However, as the industry seeks greater efficiencies
Despite this ongoing negativity toward additional and reduced costs via digitalization and automation,
investment in Blockchain, there has been no lack of standards will need to emerge even if it means that
initiatives, consortia and POCs announced many of the competitive and innovative side of the business,
which come to nothing. There are so many blockchain commodity trading (often where the true complexity
initiatives targeting energy and commodities that it is is) remains non-standard.
impossible to cover them all and so the narrative below 2. While there are many industry bodies and
uses examples and is not a definitive list. There are affiliations, this has also been an industry in
some notable blockchain efforts in the market like Vakt which working as consortia has not proven to be
and Komgo that have resulted in at least some adoption particularly successful either. This failure to reach
in specific parts of the industry. However, when you agreement is primarily because the establishment
press Vakt about blockchain, its role in their solution of a blockchain platform really requires that each
is suddenly diminished and is described as a just a participant gives up some control to a ‘central
small aspect of the entire solution. In fact, Blockchain authority.’ This is why most blockchain initiatives
appears to be less than 20% of the Vakt solution. have depended on a consortia structure in which
the overall solution is owned by an entity that is
As previously noted, Blockchain requires standard- subsequently co-owned by the participants. Again,
ization and consortia (market agreement) to work whether this model can really work in an industry
and to be attractive to new players - two things that that has mostly been cutthroat, highly secretive and
have historically not worked well in the commodities competitive remains to be seen as the results of
markets: such efforts to date have fallen well short of their
1. There have been many standardization attempts in founding goals.
the industry and none have really ever produced
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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

For blockchain initiatives to take off commercially, involved. Unfortunately, it is still somewhat true that any
they not only have to offer the promised business application that involves a hint of blockchain will likely
efficiencies and benefits, but they also require new ways be marketed as a ‘blockchain’ application, leading,
of thinking and doing. It may be this that is impeding even today, to out-sized press coverage and hype…
real progress as much as anything now. Another issue even if the blockchain aspect of it is nothing more than
with blockchain is simply the hype. The simple mention window dressing. As such, in this market, it continues
of blockchain has, in the past, created sufficient to be buyer-beware!
market hype to inflate a public company’s stock price.
Unfortunately, knowing this, some companies have very All that said, Blockchain is still being proposed and
publicly announced their intentions to make significant pursued for many use cases in the industry. Below
investments in the space, only to provide little or no we mention a few of the use cases we are aware of.
follow-up on the results of those efforts. This means Trying to categorize them is often an issue because the
that parsing the various initiatives and announcements blockchain initiatives also tend to claim they will extend
needs to be done carefully with half an eye of the hype into a myriad of areas that often overlap with each other.

Inventory
Using blockchain to securely record ownership of metals including gold, silver, platinum, palladium and
commodities is certainly an area where many initiatives rhodium, which will be optimized on goldexchange.com,
have already been announced. For example, the Dubai a secured trading platform. The refinery and storage
Multi Commodities Centre (DMCC) announced plans facility will create an optimized record of transactions,
recently to create the first precious metals refinery and making it possible to track all precious metals that are
storage facility in the Gulf region enabled by blockchain refined and eventually sold internationally to more than
technology. The facility will refine and store precious 150 countries.

Trading, Trade Back Office and supply chain support

In commodities, one of the most visible initiatives is the ABN-AMRO, Equinor, Koch, ING, Shell, Mercuria,
Vakt consortium. Using blockchain technology, Vakt Chevron, Total, Reliance and Societe Generale)
helps to manage physical oil transactions, eliminating focused on developing and deploying solutions for
reconciliation and paper-based processes. It’s a post-trade processing. It has been designed to help
consortium of oil companies and banks (BP, Gunvor, ‘eliminate reconciliation and paper-based processes,

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enhance efficiency and create new trade finance Covantis blockchain platform. It caters for post-trade
opportunities.’ Recently, the platform went live for the processes and has moved into full production two years
physically traded BFOET crude oil business and is after being created by a group of major agribusinesses
arguably the world’s first fully operational, enterprise- to digitalize agricultural shipping transactions. The
grade blockchain platform to enter the market. Vakt platform recently went live with more than 30 entities,
can also offer blockchain-based financing solutions to including – Archer Daniels Midland (ADM),
its users via its alliance with komgo. Bunge, Cargill, Cofco, Louis Dreyfus Company
and Viterra. It will initially cover bulk shipments of
BHP Group has completed a first blockchain trade in commodities such as corn and soybeans from Brazil to
iron ore with China Baoshan Iron & Steel Co Ltd, in a destinations globally, and will seek to connect shippers,
transaction worth around $14 million. BHP said that traders and charterers involved in these trade flows
the trial transaction using the MineHub platform was and is aimed at eliminating post-trade paper-based
worth about $14 million and was delivered in June. The processes. After this initial use, Covantis intends to
platform processed contract terms, exchanged digital bring in additional post-trade processes, including trade
documents and provided real-time cargo visibility, it confirmation, contract management, as well as laytime
added. The Minehub platform is designed to improve calculation. The firm also has stated their intention to
efficiency in trading operations and environmental and explore other markets and commodities, including the
social governance (ESG) compliance in mining and remaining grains and oilseeds, beyond the existing
metals supply chains. offering of corn and soybeans.

Another area where blockchain is being proposed is TradeTrip, is another blockchain initiative that
in support of supply chain. For example, Trames, a involves digitalization of documents including Bills of
Singapore-based supply chain orchestration platform, Lading, Certificates of Origin, Warehouse receipts
recently launched a software-as-a-service (SaaS) and Letters of Credit. TradeTrip markets the solution
solution that it claims will help small and medium as being designed to work via API’s with a client’s
enterprises optimize supply chain operations and existing ecosystem of commodity-focused applications
improve overall profitability. Running on R3’s Corda, to provide greater transparency, trust and fewer
the blockchain-based platform enables collaborative transactions around documentation through the supply
drafting and confirmation of shipping documentation chain – particularly those documents around custody
and advanced analytics to help optimize decision- transfer. The solution uses blockchain as well as 2D
making as well as speed up shipping processes by QR codes to identify scanned documents and deep
reducing physical paperwork. learning-based text recognition to aid in transfer of
document data to systems.
Another recent initiative in this use case area is the

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

GrainChain, is marketed as a blockchain-based ownership, and simplifies the exchange of documents

supply chain management firm seeking to enhance in a digital, secure and decentralized manner. The
visibility for producers and consumers in the commodity solution is a way to continue operations within the
supply chain in Latin America and North America. global constraints of the pandemic.
The partnership is aimed at empowering suppliers
and farmers to protect their brand reputation through Dutch bank Rabobank, commodities trader Concord
adherence to supply chain standards in a bid to create Resources, software developer Gen10, insurer
trust with the final consumers. The supply chain AON and warehousing firm PGS formed a blockchain
management will be provided by the Mastercard consortium and in November 2019 the group executed
Provenance Solution, and together with GrainChain, a physical sale and repurchase (repo) trade using
trusted end-to-end visibility will be given to products, blockchain. Repos are a type of financing, in which
ranging from coffee to sorghum, from the farmers or the lender temporarily owns the goods instead of
producers to the final consumers. This visibility will getting a lien or charge over the assets. The original
afford everyone in the supply chain to track each asset owner repurchases the commodity at an agreed
product and authenticate its origin, thus providing room time and slightly higher price. The consortium aims
for trust in the industry. to drive efficiency, traceability and transparency in
metals trading and repo financing using the blockchain
Cargill, Agrocorp, Rabobank and other logistics platform. It tracked the metal from the point of trade
partners used a blockchain platform provided by to delivery and provided real-time confirmation of
Singapore-based dltledgers to settle a $12 million completion without manual intervention. The trade
shipment agreement on April 1. The dltledgers took less than five minutes to complete using a mobile
blockchain solution is built on the open-source phone.
Hyperledger Fabric platform. The blockchain platform
provides a repeatable framework for end-to-end digital Perlin, large companies in Singapore, and the
trade executions, digitalizing the document and trade government have teamed up to develop an open-
execution process. The trade took a total of just five sourced blockchain trade platform (ICC TradeFlow
days to settle, whereas traditional trading processes platform). DBS Bank and Trafigura, in collaboration
can take up to a month. The platform created a shared, with Infocomm Media Development Authority
unchangeable record of the transaction. (IMDA), the International Chamber of Commerce
(ICC), Enterprise Singapore, and Tradetech
According to dltledgers, cross-border commodity Perlin aim to connect trade partners across borders
trading is one of the most promising sectors for and streamline manual paper-based trade processes
blockchain, which allows for real time monitoring by to improve trade flows. Built on IMDA’s TradeTrust
multiple parties, dispenses with concerns about data network infrastructure and powered by Perlin’s

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

blockchain technology, the platform is designed to integrate with existing ETRM systems.
be interoperable with existing and future digital trade
platforms. Another trading area that has been touted as ideal for
blockchain is at the retail end of power and gas trading.
The Ricex platform is a blockchain-based rice Distributed power generation and small local grids
trading exchange developed by Fujitsu. The platform which can function independently have been identified
is designed to specifically address the problem of as an area for blockchain to provide peer-to-peer online
managing trading across a wide variety of strains, each platforms to trade energy. Various initiatives exist in
with differing quality, taste and fragrance, all of which this space including one by Transactive Grid in April
determines the price of rice. The Ricex digitalizes rice launched a peer-to-peer (P2P) transaction platform
trade using blockchain and provides a transparent that enables Brooklyn Microgrid members to buy and
ecosystem of importers, exporters, wholesalers, sell electricity produced from residential PV solar
producers, regulators and other stakeholders. The installations. Other examples include Germany’s GridX
platform claims to streamline the trading process by and Australia’s Decentralized Energy Exchange
providing insurance, shipping information, inspections, (deX) and numerous other examples exist and this
and automated settlement to participants. With the area does seem ideal for blockchain.
blockchain platform, traceability is also enabled,
allowing buyers to identify rice certified as sustainably Finally, TradeCloud is an initiative started by several
grown. ex-commodity traders in Switzerland. Its initial focus was
on a communications platform for metals commercial
Even traditional CTRM is seen as a candidate for users and, based on the success of developing that,
blockchain and EnHelix®, an oil and gas commodity a similar platform for energies like coal, oil, refined
trading and logistics management software marketed products, and so on. It has also released a post-trade
as having embedded artificial intelligence and component that utilizes the blockchain and intends
blockchain capabilities, recently announced its to connect to a wide range of third-party services and
Marketplace Blockchain software for commodity develop an API to connect to commercial CTRMs prior
trading companies. The company claims its software is to the end of the year.
an advanced blockchain solution for trading companies
which helps to standardize and automate its system of In trade negotiation, the solution uses several setup
physical trades. They note they believe their solutions configurations like a workflow application to allow
reduces fraud and operational risks and expedites appropriate communications, and a number of other
payment and provides other benefits like automated setup and configuration items to define various contract
trade execution via a distributed blockchain enabled terms and conditions. Users can set up sales and
application to reduce trade discrepancies and can purchase proposals and share them as broadly or as

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

narrowly as they wish while others can explore the sort The post-trade aspect also has a bit of permissioning
of deal, they may be interested in. Once both sides of and set up to configure of course though nothing so
a deal are moving forward, each step is recorded and very complex. It seems straightforward to achieve this.
captured whether it be a contract or deal changes The trade is then imported, and the system shows the
via conversation or edits and it is all done in a way to work that each person and organization need to do
highlight what has changed and what needs to get following it through to completion. Amendments can
done next. Once accepted, a legally binding contract is be made to the contract, parties notified of events like
created. The solution also covers the KYC process in a insurers, warehouses, logistics firms, banks, and so
similar way such that parties can exchange documents on and everything is auto filed as the processes are
and go through an organized process securely and worked through. All are written to the blockchain for
have a complete audit trail at the end of that process. security, trust, and confidence. The highly complex and
often manual steps are digitalized as a result.

Sourcing
The Responsible Sourcing Blockchain Network automotive, electronics, aerospace and defense, as
(RSBN) is a network aimed at supporting responsible well as their supply chain partners such as mining
sourcing and production practices from mine to market. companies and battery manufacturers.
Several mining and metals producers have joined the
platform to participate in a circular value chain, tracing Atomyze LLC is the US branch of a global fintech
commodity flows in near real time as well as replacing platform that claims to digitalize and modernize
cumbersome paperwork. Built on IBM Blockchain the trading experience for products, assets and
technology and powered by the Linux Foundation’s commodities by enabling investors to invest in the
Hyperledger Fabric, the RSBN platform aims to actual underlying commodity directly and safely. Using
improve transparency in the mineral supply chain by technology powered by blockchain, Atomyze provides
providing a highly secure and immutable record that a marketplace for investors to buy digitized assets of
can be shared with specified members of the network. any kind, including commodities, for issuers to trade
their assets on blockchain, and for the management
RSBN is designed to be adopted across industries of supply chain contracts between issuers and
by original equipment manufacturers (OEMs) in commercial users.

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Trade Finance
Komgo is a blockchain trade finance platform to standardize and facilitate the KYC process enabling
specifically targeting commodities in which Rabobank exchange of documents on a “need to know basis”
is a member alongside other prominent Dutch banks without a central database.
ING and ABN Amro and several other international
financial institutions. To date, the focus of the initiative dltledgers has also launched a platform called SmartFin
has been on oil and gas. The platform is said to provide for small and medium enterprises (SMEs) to access
a wide range of solutions that facilitate trade finance trade financing from alternative financiers. SmartFin is
between participants and increase the speed of a blockchain-based system that matches SMEs that are
transactions. According to the company, the blockchain seeking finance to funders who can provide it. According
technology allows stakeholders to control a deal in real to dltledgers, over 400 companies have already signed
time and offers improved transactional transparency. up, and can currently access financing from a handful of
Currently the company offer two products: 1) a digital non-bank financiers, including TradeFlow, Drip Capital,
letter of credit (LC), which allows commodity players Funding Societies, Crowd-Genie, Stenn International
to submit digital trade data and documents to their and Capital Match.
banks, and 2) a know-your-customer (KYC) solution

Document Management
TradeTrip is a blockchain initiative that involves solution uses blockchain as well as 2D QR codes to
digitalization of documents. Currently those documents identify scanned documents and deep learning-based
include Bills of Lading, Certificates of Origin, Warehouse text recognition to aid in transfer of document data
receipts and Letters of Credit. More document types to systems. Currently the solution is being piloted
will be added. The TradeTrip solution is designed to by a company in Singapore and is part of a couple of
work via API’s with a clients existing ecosystem of accelerators in Singapore as well. The company sees
commodity-focused applications to provide greater the solution growing not just in terms of documents
transparency, trust and fewer transactions around but also in terms of tracking cargoes and via the use
documentation through the supply chain – particularly of smart contracts, which could facilitate event-based
those documents around custody transfer. The activities like automating a payment on receipt of cargo.

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

Will Blockchain Break Through?

There are any number of initiatives around blockchain various initiatives previously noted, there are truly few
and new ones are announced almost weekly. Though commercial applications in widespread use.
this level of activity has been going on now for 3-4 years,
we still see very little blockchain being used in practical That said, blockchain is likely poised for further
application across the broader commodity markets. adoption, those it’s broad use may on be in certain
And in fact, the murmurs of discontent and projects application areas, such as an adjunct for clearing and
that never really took off far outnumber the applications settlement process. However, for even limited usage
that could be viewed as successful. A recent third- to occur, transaction speeds and power requirements
party review3 of 33 blockchain projects involving large likely must continue to improve.
companies announced over the last 4-years showed
that at least a dozen of these projects, which involve Blockchain will need to move beyond the hype to the
major banks, exchanges and technology firms, have point where it is a technology that has a real business
not gone beyond the testing phase, and those that case, and its use offers superior results when compared
have made it past that stage are yet to see extensive to competing and more mature technologies. Moving
usage. In 2019, Lauren Manning, founder of GCTA, an from hype to reality, that point when Blockchain can
organization found to improve the trading process for quantifiably demonstrate its true value as a broad
the commodities industry through the adoption and solution in a complex market will take some time. In our
standardization of technology, said she felt blockchain opinion, widespread use of blockchain remains years
was at least a decade away4 even while touting it for away.
many processes in commodities. And, despite the

Augmented and Virtual Reality

Despite the lack of interest in these technologies For example, Citi released a proof of concept5 for
within our survey, continuing investment in applications an augmented reality trading application for stock
and equipment across various industries, and trading, back in early 2019. Using the Microsoft
investigative spending within some segments of HoloLens headset, Citi worked with a virtual reality
commodities industries indicate they do hold some design firm and the results can be seen in a You
potential to have an impact in the coming years. Tube demo where a Citi trader “Jason” checks the

3
https://www.reuters.com/article/us-blockchain-finance-focus-idUSKCN1UB0YV
4
https://agfundernews.com/the-lunacy-of-blockchain-drove-commodities-veterans-to-launch-new-technology-association.html
5
https://qz.com/650872/citigroup-wants-to-bring-microsofts-hololens-and-augmented-reality-to-stock-trading/

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Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

news on the traditional 2D monitors. It features voice content and services going from $80bn in 2020 to
commands and holograms of other traders. “The $569bn in 2025.
trader is no longer confined to the trading desk and
could project graphs and maps the size of the room Banks maybe moving forward with the technology.
in the AR space, enabling the more intuitive input and Millennials are more accepting of the technology and
analysis of information,” according to Citi GPS in the a growing part of the workforce. However, the trading
October 2016 report6. In that report, Citi predicted floor application may yet be some way off. However,
that VR/AR will be used extensively across a range there are several potential use cases emerging.
of applications with growth in VR/AR equipment,

Virtual Desktops
Traders do like a lot of screens and devices, and the cutting off the outside world and so the application was
ability to put that in a VR office to have more space moved into augmented reality where it worked much
maybe attractive. In 2017, FlexTrade demonstrated better. The trader uses hand gestures or key words to
an augmented reality trading application with Microsoft interact with virtual objects.
HoloLens for FX. Using existing technology and
application programming interfaces (APIs) within AI can be combined with VR/AR to add in contextual
its EMS software7, its FlexAR application offers an information and for image recognition. Realistically, the
interactive order blotter, trade ticket and charting in the technology is some way off, but it may find use in some
virtual space. However, while initially delivered as VR of the following areas.
it was found that this made it very difficult to work by

Data Visualization
Being able to visualize ever increasing types and part of Fidelity Investments, has also taken advantage
volumes of data is a continuing and growing issue and of the technology behind Oculus Rift.
AR and VR may make it easier and faster to visualize
and organize large amounts of data. Today, for example, In commodities related industries, the oil and gas
Salesforce uses Oculus Rift to create an immersive exploration space has been the earliest and longest
3D environment for analyzing data and Fidelity Labs, a running example of a practical use of data visualization

6
https://www.citi.com/commercialbank/insights/assets/docs/virtual-and-augmented-reality.pdf
7
https://flextrade.com/buy-side-flextrade-products/

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 Disruptive Technologies – A 2021 Update A ComTechAdvisory Report

using VR/AR. Dating back to the 1980’s, service Other uses of 3D visualizations being used today
companies such as Halliburton and E&P companies include mine planning, stockyard management for bulk
such as Exxon, ARCO and many other majors have commodities (such as that available from Eka’s bulk
employed data visualization rooms, or immersive terminal operations system) and modeling complex
environments, to enable better collaborative visualiz- processing facilities for planning and operations.
ations and interpretation of 3d and 4d seismic data.
Though some of these environments are still in use In commodities trading, simple 3D visualizations are
today, advances in processing power and desktop used today for modeling volatility surfaces for analyzing
capabilities have moved most of these data visualization price and market risks – a capability embedded in a
techniques onto desktop machines and large display few commercially available CTRM solutions.
screens that utilize active 3D glasses worn by users.

Trading
As mentioned, although this may be some way in the area where this technology takes off, and most likely
future, the ability to better organize vast numbers in the financial and equities markets. However, there is
of screens and data, and conduct business with little demonstrable progress in this area in the physical
holographic versions of counterparties may well be one commodities markets.

Training & Education

This type of use is probably the most obvious as both training on large industrial equipment can be difficult,
VR and ER technologies are in use in industries such expensive or pose HSE risks. That said, there are yet to
as airlines for pilot training, oil field services firms for be any high value use cases for training identified in a
equipment training, and various other industries where commodity trading-type environment.

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DISRUPTIVE TECHNOLOGIES AND THE

IMPACT ON CTRM AND CM
It could be argued that the pace and level of change in commodities related industries is
unprecedented and the technologies that enable is market is both driving and being driven
by those changes. In the end, the industry is evolving towards a more integrated supply chain
orientation with an emphasis on optimization, collaboration, efficiency and better controls, and
all of this does and will continue to impact CTRM and CM software.

As analysts, we have been observing the move away visualization. While VR and augmented reality may still
from large monolithic and siloed applications towards be a way off in terms of everyday use on the trading
ecosystems of more agile and focused applications floor, innovating better ways to view and analyze data
that use rich API’s to tie them together. Increasingly, is increasingly becoming a key attribute of the modern
these specialized applications are being deployed in CTRM and CM solution. Some vendors, such as FIS,
the cloud and on cloud infrastructures that provides have included 3D visualizations of risk surfaces as part
controllable scalability and improved performance and of their native capabilities, more often advanced risk
security. Microservices are increasingly being used analysis techniques have been accomplished via data
within this context. integration to solutions such as Matlab which provide
more advanced and powerful data visualization tools
Digitalization is also helping with the elimination of and capabilities than one might find in most CTRM
the more obvious manual repetitive processes that solutions currently available.
plague the industry. Increasingly workflow solutions,
RPA, AI and ML are also being deployed to ensure Natural language processing (NLP) is being used today
process flow adherence, better operational controls in some CTRM solutions, such as Molecule’s ETRM/
and more streamlining by reduction/automation CTRM platform, to enable users to more quickly capture
of common manual processes, with provisions for deal data. Though perhaps some way off, we may see
better identification of exceptions requiring human other, potentially more efficient ways of interacting
intervention. We also note a trend towards event-driven with CTRM software made available, such as use of
calculations and processes. voice commands supported by AI. AI and advanced
workflow automation may also be used to better enable
Yet another area of CTRM/CM impact is in enhancing users to more efficiently navigate multiple screens and
the user experience and provision of advanced data applications in order to complete tasks and activities.

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AI has also demonstrated utility in document processing their use cases to date, it is clear is that the future
in the commodity trading space, though its value to date of CTRM and CM must be one of innovation and
has been limited given the highly structured nature improvement from architecture to user experience.
of most physical/electronic documents exchanged This will certainly pose a challenge for both smaller,
in these markets. Nonetheless, as more companies niche vendors who lack access to funds as well as to
continue to move to a fully digital environment, we might larger vendors with legacy software and large installed
expect to see greater use of AI-enabled document bases that must be managed, guided and moved
management as a native CTRM function. through iterations of complex software that supports
years of business-critical information. Newer vendors
It is unlikely that blockchain will ever be embedded will undoubtedly hold something of an advantage
as a native capability in any CTRM/CM application, relative to being able to leverage these technologies,
though certainly as blockchain solutions gain but they will probably lack depth of functionality,
traction in energy and commodities, CTRM/CM will financial security and brand recognition possessed by
need to interface with them. The most likely points the larger legacy CTRM/CM providers. That said, if
of interaction will be in blockchain managed custody the future really is ecosystems of solutions, perhaps
transfer records, smart contracts, and aspects of there is room for all in best of breed type ecosystems
settlement where confidence and trust are key. constructed by the users themselves, one in which
these emerging technologies can live alongside the
Given the increasing market interest in many of the narrowly focused but functionally deep traditional
disruptive technologies examined in our research, and solutions and agile components?

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 32

ABOUT INVENSOFT

Invensoft Technologies is an IT Company providing Com- implementation are tailored to fit every business ranging
modity Management Software Solutions for business from 5 user companies to 500++ enterprises. Contact
in Agricultural Commodities, Metals, Minerals and Con- less and remote implementation enables go-live in few
centrates. Since year 2000 Invensoft is supporting top weeks. XBSCloud offering includes:
global commodities companies including Fortune 500
companies in Asia, Africa and Latin America covering In- • Invensoft-XBS© CM provides extensive features
dia, Indonesia, Singapore, Malaysia, Vietnam, Kenya, Tan- with out of the box localization for Commodity Ori-
zania, Uganda, Ivory Coast, USA, United Kingdom, Peru, gin Business, Procurement, Quality Management,
Mexico, Honduras and Colombia. Processing, Warehousing, Certification, End-to-End
Bi-Directional Traceability, Sustainability Certifica-
Invensoft-XBS© popularly called as XBS is a Unified tion, Trading, Hedging, Risk Management, Positions,
Commodity Management Platform offering Commodity Exposures, Daily P&L and reporting.
Management (CM), 3rd Party Commodity Warehousing • Invensoft-XBS© CW3PL provides innovative features
& 3rd Party Logistics (CW3PL) and Commodity Trade for commodity 3rd party warehousing, processing
Risk Management (CTRM) covering End-to-End needs of services and logistics business covering commodity
Commodity Business. XBS is an enterprise Web App with intake, quality management, warehousing, collateral
an integrated Mobile App called XBS Apps© available on management, processing, packing, container stuffing
Apple iPhone, iPad, Android Mobile phone and Tablets, and shipping. Innovative Customer Center module
offers users seamless operational, reporting experience enables customers, bankers to be a part of business
with business controls on real time. process.
• Invensoft-XBS© CTRM provides end to end features
Integrated with Digital technology and AI, our solutions for commodity trade risk management involving in
transform the commodity business to the next genera- Contract Management, Trade Management, Ware-
tion digital business. Starting from commodity purchase housing, Traceability, Hedging, Risk Management,
throughout the life cycle including warehousing, process- Positions, Exposures, Daily P&L and reporting.
ing and logistics, Digital technology and AI has been inte- • XBS APP© is an integrated Mobile App for a seam-
grated to enable intelligent traceability even after multi- less commodity business management on iPhone
ple cycles of blending and bulking. AI based solutions are and Android devices. Users can access real time in-
available for purchase price intelligence, quality analysis, formation on inventory, position, intakes, shipments
processing yield prediction and QR code based smart and approve purchases and sales contracts on the go.
warehousing of commodities.
Website: www.invensoft.co.in
XBSCloud is an End-To-End Cloud SaaS offering by In-
vensoft providing Web Apps, Mobile App, including ser-
viced and self-serviced BI with no up-front license fees,
lower initial and operating costs. Subscription fees and
ABOUT KYOS ENERGY ANALYTICS

KYOS offers analytical services to energy market play- KYOS offers expert in-depth knowledge on identifying,
ers. Since its establishment in 2008, KYOS has de- unlocking and hedging the value of flexibility of energy
veloped software for power, gas and other commodity assets and is widely used by clients in various adviso-
markets. To support day-to-day operations, our analyt- ry projects. Projects include advisory work for national
ical software combines innovative mathematical solu- regulators, major electricity producers, project develop-
tions with a user-friendly interface. Furthermore, KYOS ers and utilities. Topics range from risk assessment of
supports energy market players by performing advisory power purchase agreements for new wind generation
projects, mainly focusing on flexibility questions. projects, impact of transport costs on gas storage eco-
nomics, to expert views during arbitration cases on the
Based on a solid analytical framework, KYOS offers: value of gas storages.
• Software to optimize, value and manage flexible en-
ergy portfolios KYOS’ clients can be found across Europe, most nota-
• Advisory services to support decisions in energy bly in the UK, Ireland, Germany, France and the Neth-
markets erlands. In addition, our services are used in Japan. We
• Training courses for energy professionals also serve major players in the commodity markets with
our PRM (Portfolio and Risk Management) System.
KYOS’ main software solutions are focusing on identify-
ing and valuing the flexibility of the assets of our clients:
• KyPlant: valuation and optimization of power plant
assets
• KyStore: valuation and optimization of gas storage
assets
• KySwing: valuation and optimization of swing con-
tracts
• KyPPA: valuation and risk management of renew-
able PPAs

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 34

ABOUT COMMODITIES PEOPLE

Since 2009 we’ve worked across all facets of global Our clients value our independence, understanding of
trading, creating an effective global communication the complexities of commodity and energy trading and
and information channel for everyone involved in the the way we bring the community together.
world’s Commodity and Energy sectors. We bring the
right people together, for networking, knowledge-ex- Keen to learn more?
change and doing business. Drop us a line on [email protected]

Commodities touch every single person on the planet,

and we communicate to everyone in the production,
trading, transporting and consuming of commodities
and energy – from a simple coffee bean, to rocket fuel,
to alternative energy.

We provide the vital physical and online forum for the

participants in energy and commodity markets to ex-
change ideas and knowledge, find out about innova-
tions in their market sectors, and learn from market
experts.

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 35

ABOUT BEACON

The Beacon Platform is the only commodity and ener- development environment enables firms to centralize
gy platform to provide access to all source code within all their technology and development on one platform;
an integrated development environment, together with develop, deploy and use new strategies and applica-
front-to-back trading and risk management applica- tions quickly; and adapt to regulations faster than be-
tions. Beacon was built by the team that created last- fore. This transparency and flexibility empower clients
ing trading and risk technologies at some of the world’s to securely build, iteratively test, tweak and integrate
largest banks. Their technology platforms have stood proprietary models and analytics, and to extend end-us-
the test of time at the world’s premier financial institu- er applications easily. Beacon takes away the shared
tions. Beacon makes the same level of technology avail- pain of implementing new technology and lets firms fo-
able to everyone. Beacon brings together two of the cus on their own core activities. The future of commod-
lead engineers and co-founders, Kirat Singh and Mark ity trading is being built, hosted, and distributed on the
Higgins, who are responsible for the three premier en- cloud. Beacon delivers the benefits of cloud technology
terprise innovation platforms in the industry. The Bea- to clients, including cybersecurity, flexibility, and scale.
con technology builds on nearly 30 years of innovation, Beacon helps to solve the build vs. buy challenge. Cli-
refinements, and lessons learned at Goldman Sachs, ents can manage technology infrastructure as well as
JPMorgan, and Bank of America and Merrill Lynch. build their own solutions in one secure environment.

Beacon’s transparent source gives developers access

to the entire Beacon platform which enables the client
–- not the vendor –- to own the full technology stack. It’s
designed to be extended, not replaced. Beacon’s flex-
ibility makes commodity firms more nimble. Beacon’s

© Commodity Technology Advisory LLC, 2021, All Rights Reserved. 36

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

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+420 775 718 112

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Email: [email protected]