Conversations with Leaders in CTRM: ComTech Advisory Video Interview with Allegro’s Chief Strategy & Customer Officer

In a recent interview with Patrick Reames from Commodity Technology Advisory, Allegro’s Chief Strategy and Customer Officer, Michael W. Hinton, discusses Allegro’s market expansion and its approach to helping customers achieve “digitalization.” Michael also provides insights into what customers are seeking as commodity markets continue to evolve. To watch the video, click here.

Below is an interview summary, as well as additional thoughts:

Allegro’s Answer to Market Need for Digitalization

Market volatility is forever going to be a problem for commodity industries; but the way companies respond to said volatility is changing drastically. For example, the Northeast US set record prices for natural gas this past winter, creating uncertainty that has forced oil and gas companies to think differently and search for ways to create better efficiencies and transform the way they respond to market changes.

Continued market uncertainty, particularly around commodity prices, has sparked the recent marketplace trend of “digitizing” business processes. Allegro has answered this need through product innovations, as well as its recent acquisition of Financial Engineering Associates (FEA).

With constant investment in R&D to drive product innovation that meets customer needs, some of Allegro’s newest offerings include Horizon and Allegro Mobile. Horizon is a cloud-compatible technological leap forward in commodity management software, bringing an evolutionary product architecture that uses loosely coupled components to deliver the most advanced, modern ETRM and CTRM software solution. Other vendors have monolithic applications with two-year implementations and extremely high cost ownership. This latest iteration of Allegro’s software delivers powerful results, and it delivers them fast, without compromising the technological superiority that’s been a hallmark of Allegro since its founding in 1984.

Another way companies are moving toward complete digitalization is by enabling mobile access to information. In order to answer the need for 24-hour remote access to real-time data, workflow approval, and position visibility without being chained to an office, Allegro designed its iOS and Android compatible CTRM mobile application. With Allegro Mobile, IT professionals, back office, traders, and risk managers can:

  • Manage workflow approvals for trade and credit risk departments
  • View reports at the summary and detail levels, including mark-to-market, physical inventory, and credit analysis
  • Receive messages and notifications for system monitoring, risk tolerances, new counterparty information, and end-of-day processes

Finally, Allegro’s acquisition of FEA brings to the table a number of different products around analytics, including valuing complex instruments on the physical and derivatives sides, asset optimization, and at-risk capabilities. These solutions will empower customers to make smarter decisions around how they dispatch assets and hedge portfolios, enabling them to maximize profitability.

What Customers are Looking for

With a noticeable jump in ETRM and CTRM vendor M&A activity over the past five years, today’s CTRM software market can seem just as volatile as the commodity industries it serves. Many industry professionals using commodity management platforms powered by recently acquired vendors have expressed concerns around potential lack of investment in products, or worse, being stranded on a legacy system that is no longer supported.

Customers are looking for a stable solution provider that is invested for the long-haul, as well as scalability in performance and decision support. Allegro has been in the CTRM and ETRM space for over 30 years and will continue to provide stability and growth opportunity to its customers.


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