With the release of @ENERGYÃ 2.0 Financial Engineering Associates, Inc. (FEA) delivers its most fully integrated set of derivative pricing, market modeling and financial forecasting software tools to date.
Already the key to energy-industry trading and risk management systems worldwide, FEA’s @ENERGY software gives utilities, traders and marketers of energy-related assets the advanced tools they need to price intricate energy and power transactions; to engineer protective hedging strategies; and to manage the risks inherent in complex commodity and derivative portfolios.
“FEA is the leader in energy analytics worldwide, and we remain dedicated to delivering highly-customizable, comprehensive analytic software solutions,” Dr. Carlos Blanco, Director Global Support said. “With @ENERGY 2.0 we now provide our clients the power to construct the forward curve. They can then use this as an input to value and analyze highly complex energy portfolio strategies with models that truly reflect features unique to today’s volatile commodities and energy derivatives markets.”
With four different market behavior models, including mean-reversion and jump-diffusion, @ENERGY 2.0 users can rely on FEA’s proven option pricing methodologies, knowing they have the analytical tools most relevant to today’s energy and power markets. @ENERGY 2.0 includes the most extensive instrument coverage available and, for better hedging, can return instrument exposures to the full risk curve. And to help users better understand and analyze energy market behavior, FEA has developed a simulation tool for @ENERGY 2.0 that allows users to dynamically visualize the effect of new model parameters on price paths and market assumptions.
"@ENERGY 2.0 is perhaps our most robust analytical software product today,” commented Angelo Barbieri, FEA’s AVP for Financial Engineering. “We developed @ENERGY 2.0 to surpass our clients’ expectations for enhanced input flexibility and output control. For example, with @ENERGY 2.0, users can specify two varying mean-reversion rates, price swing-straddle contracts with overall load constraints, and plot a forward power curve at 15-minute intervals.” FEA software engineers have also trimmed calculation times by as much as 30 to 60%.
@ENERGY 2.0 is a suite of Excel add-ins, including the @ENERGY/Forward Curve Builder, @ENERGY/Basic and @ENERGY/Advanced, @ENERGY/Swing and @ENERGY/Weather modules. FEA’s companion product to @ENERGY 2.0, ErglibÃ 2.0, is an object library permitting maximum flexibility for customization and integration. Erglib 2.0 and other FEA products are also licensed through the FEA Alliance Partners program as embedded components of customized trading and risk management solutions. Some U.S.-listed companies who are FEA Alliance Partners include Alstom (NYSE:ALS), Caminus (Nasdaq:CAMZ) and PeopleSoft (Nasdaq:PSFT), along with two dozen other well-known companies.