Vienna, September 18, 2018 – VisoTech leads in overall fulfilment of requirements for an energy algo-trading solution and has the widest market coverage of all European providers. This is shown by the current study “Standard Software for Automated Energy Trading” carried out by The Advisory House, in which eleven vendors in the European market were compared. The study helps energy companies select software for automated energy trading.
The Advisory House’s experts scrutinised eleven European suppliers of automated energy trading software on the basis of four criteria: market coverage, methodology, features and technical aspects. “We are proud of our excellent rating. The result of the study confirms our strategic orientation and encourages us to continue to improve our product and to provide access to even more new markets, “explained Jürgen Mayerhofer, Managing Director at VisoTech.
No market standard for automated trading solutions
The study found that while the market for automated trading solutions is developing rapidly, there is still no standard for such products. The investigated vendors have varied specialisations but differ the most in their market coverage. Almost all systems provide automated trading of power, while automated gas trading or bilateral trade (OTC) is only available from a few, such as VisoTech. Most of the products are geared to current demand in the intraday electricity markets, while the coverage of derivatives trading is low. VisoTech plans to further expand the product in the field of futures. The providers also differ significantly in the connected marketplaces and platforms. Mayerhofer: “We are currently certified by EPEX SPOT, Nord Pool, HUPX, BSP South Pool, PEGAS and Trayport.”
Current market developments
In view of the current market situation, the experts of The Advisory House found that wholesale margins are currently low but stable. The capacities of renewable energies are increasing significantly, which means that more short-term volumes are available on the market. Cross-market liquidity and transparency is increasing (for example through XBID). While fully automated intraday trading solutions are now established on the market, this is not yet the case for automated forward trading solutions. Even standard data analytics software is still little used.
According to Mayerhofer, “We want to maintain our strong market position and high customer satisfaction in the future. For this reason we are constantly working to improve our products. A number of product enhancements are planned for the near future.” These include:
- Out-of-the-box algorithms for OTC trading and PEGAS futures.
- The realisation of AI-based trading algorithms for the short-term, market-related optimisation of assets.
- Support of the EPEX-UK migration to the M7 platform.
“We are currently in discussion with additional European marketplaces where we want our product to be certified”, Mayerhofer added.
You can find further details on the study results here.
About The Advisory House
The Advisory House (TAH) is a leading management consultancy for the European energy industry and has been honoured three times in a row as a “hidden champion” in the energy industry. TAH supports large European energy companies in overcoming their management challenges and ambitious transformation processes. Consultants in Dusseldorf, Vienna, Zurich and Bath have outstanding expertise in all stages of the energy industry value chain and provide high-quality consulting services for strategy, processes, organisation and technology. TAH stands for outstanding project results and measurable customer benefits.
Further information can be found at: www.advisoryhouse.com
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