Tallarium, a provider of trade analytics for price discovery in off-exchange energy markets, has secured £1.3 million in new funding.

It has secured additional investment from XTX Ventures, the venture capital arm of algorithmic trading company XTX Markets, and Reciprocal, a venture capital firm. It takes the total raised by Tallarium to date to $7m. 

The expanding company aims to become the ‘single source of truth’ for pricing in the opaque energy trading markets. 

Based on the energy clearing house and exchange data from ICE and CME, as well as Tallarium’s own calculations, over 90% of energy contracts, representing over $7 trillion per annum, are traded off-exchange – via messenger chat and over the phone. 

The industry has been one of the slowest to digitise, with energy traders still using Microsoft Excel as the primary tool used to record and analyse data. Some of the world’s largest energy firms are forced to rely on these highly manual methods for risk management and valuation processes. 

Tallarium’s platform automatically gathers and structures pricing information from broker chat messenger and voice conversations to create a price discovery platform for the entire market. 

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“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,” said Stanislav Ermilov, founder and CEO of Tallarium. 

“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.

“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.”  

Mike Irwin, COO at XTX Markets, said: “As innovators in trading ourselves, we are always looking for partnership and investment opportunities in exciting companies making  a real contribution to  financial markets.

“We were impressed by Tallarium’s technology, its people and its focus on solving a real problem in energy market trading, by providing definitive product pricing information where none has existed before.”

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