Tallarium, a provider of specialised trade analytics for price discovery in off-exchange energy markets, has secured an additional $1.6million investment from XTX Ventures, the venture capital arm of algorithmic trading company XTX Markets, and Reciprocal, a venture capital firm. The investment will support the company’s goal of becoming the definitive pricing source for the energy trading markets. This latest investment brings Tallarium’s total funding to date to $7 million.
The energy trading industry has been slow to digitise, with many traders still relying on Microsoft Excel as their primary tool for recording and analysing data. The company estimates that over 90% of energy contracts, representing more than $7 trillion annually, are traded off-exchange through messenger chats and phone calls. Consequently, some of the world’s largest energy firms are left to depend on these labour-intensive methods for risk management and valuation processes.
Tallarium’s platform employs robust methodologies to automatically collect and structure pricing information from broker chat messages and voice conversations, creating a comprehensive price discovery platform. The platform’s advanced data analytics are designed to offer a significant improvement in off-exchange energy trading, rendering manual data entry and analysis obsolete, aiming to enhance efficiency and optimise the potential of each trade.
Stanislav Ermilov, Founder and CEO of Tallarium, commented: “Tallarium will help bring all the benefits of digitisation to energy traders, such as centralised pricing and access to increased liquidity, without asking traders to change the way they trade. Our technology empowers energy traders to trade more profitably by capturing more opportunities and helping them to manage and respond to market risk more effectively.”
He added: “We’re delighted to have secured the backing of key strategic partners such as XTX and Reciprocal Ventures, who bring with them deep domain expertise in data and capital markets. They will contribute their experience and invaluable advice to our team as we continue to grow and this additional funding will allow us to accelerate our development and scaling even further. We look forward to a long and successful relationship with our new investors.”
Mike Irwin, COO at XTX Markets, commented: “As innovators in trading ourselves, we are always looking for partnership and investment opportunities in exciting companies making a real contribution to financial markets. We were impressed by Tallarium’s technology, its people and its focus on solving a real problem in energy market trading, by providing definitive product pricing information where none has existed before.”
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