FEA, an industry leader in energy and commodity analytics, has launched FEA @ENERGY 6.0, the latest release of its pricing, hedging, and risk management tool for the energy and power markets. @ENERGY 6.0 includes FEA’s first software model to simultaneously optimize energy storage and transportation assets.
“With the increased volatility of seasonal storage spreads, accurate and timely storage valuations are essential in order to maximize the returns of physical assets. The release of @ENERGY 6.0 is an exciting development for the energy and power markets, as our new model will enable clients to extract and maximize the optionality of both the physical asset and the pipeline,” said Frank Cummings, executive director and head of FEA. “Our primary focus at FEA is to continually improve our models to meet the needs of the dynamic energy and commodity markets. As the market for physical asset valuation and management continues to grow, our clients need tools that allow them to operate more competitively and generate maximum returns.”
FEA’s new model simulates spot prices and forward curves at a specified number of market locations and performs a joint-optimization over the complete set of storage and transportation constraints and costs.
@ENERGY 6.0 also offers a European style natural gas market model, which now includes National Balance Point (NBP) pricing for the UK. This significantly extends the wide range of hedging instruments to include available short-term and long-term forward contracts traded in Europe, and provides clients with a decision support tool for the popular Rolling Intrinsic and Basket of Spreads trading strategies.
The FEA @ENERGY product suite provides valuation, hedging and decision support for energy and commodities derivatives, accommodating multiple contract provisions, operational characteristics, trading strategies and pricing models.
