Discover what ION can do for you
About FEA
Maximize profit by executing optimal trading and hedging strategies, while also mitigating market risk. Gain maximum value from your assets and contracts using advanced optimization models. Enhance your operational and fundamental approaches to trading with deeper insights and generated recommendations.
Why FEA
As the gold standard in the analytics industry, FEA’s advanced energy and commodities analytic solution offers decision support, portfolio valuation, complex option pricing, hedging strategy recommendations, and asset optimization across multiple commodity classes. FEA’s flexible analytics and portfolio solutions can be tailored to your business’ needs. This supports standard and structured commodities trading and risk management, including exchange traded, over-the-counter derivatives and options, and complex structured transactions.
Increase profitability and mitigate market risk
Optimize trading strategies
Integrate with commodity management systems (CMS)
Understand the impact of external events
Reduce implementation time
Get support from world-class PhD Quant experts
Key features
Manage risk with decision support tools
Unlock advanced analytics with real options-based decision support, optimization, and valuation tools.
Understand effects of cross-commodity correlations from the asset level to the portfolio.
Simulate different risk factors analyzing impact, frequency distributions, and probabilities.
Maximize profits
Understand and quantify complex transactions such as options, assets, and long-term contracts.
Define optimal and realistic trading strategies, factoring in liquidity.
Track strategy performance and dynamically rebalance hedges to increase P&L.
Mitigate market disruptions
Assess the impact of potential shocks (market, geopolitical, weather, etc.) on your portfolio.
Take appropriate risk mitigation action using advanced analytics and hedge recommendations.
Calculate the likelihood of events through different data analysis methodologies (like Extreme Value Theory).
Gain transparency into your business
Validate trading strategies with FEA’s fully documented benchmarks.
Increase consistency by using the same models and market assumptions in every division.
Audit any analytics and output, reviewing all data input and intermediary simulations data.
Enhance your solution with optional value-added modules
ION’s FEA analytic models are offered as a comprehensive suite of dedicated stochastic models, with real-time support from quantitative analysts. FEA models are widely used across the commodity trading industry and are recognized as an independent benchmark. FEA consists of the following four product families.
Option analytics
Improve decision-making with advanced analytics for single and multi-asset vanilla/exotic options and physical contracts, all with embedded optionality. Get recommended hedging profiles and other advanced metrics for structured contracts, including multiple underlying/FX and complex volumetric clauses.
Asset optimization
Increase profitability using simulation-based models with accurate representation of all physical and market constraints. Use advanced algorithms and statistical analysis for decision support.
Market data analytics
Benefit from robust calibration procedures with one-factor, two-factor, and multi-factor mean-reverting models. Support large scale, long horizon simulations and stress testing of diversified portfolios with optimized structural covariance models.
Portfolio analytics
Quantify portfolio exposures with valuation and analytic methods to drive decision support on how to eliminate or offset exposures through advanced simulation methodologies. Analyze cashflow risks, credit exposure, and back-test trading strategies, or support merger and acquisition operations with advanced analytics.
Frequently Asked Questions
What are the different delivery mechanisms for FEA products?
FEA models can be deployed either as a stand-alone or enterprise-wide service. Each model solves a particular use case, typically through closed-form, tree-based, and simulation-based algorithms. The models support multiple deployment platforms, including XLLs, DLLs, and Web Services.
What differentiates FEA from other analytic solutions?
FEA provides multi-factor, Monte Carlo-based simulation approaches that are the most widely used across the energy trading community. The solution has been developed over 15 years by industry experts. FEA’s transparent methodology, audit-ready documentation, and premier P&L engine are trusted to optimize assets worth tens of billions of dollars across the globe.
What systems can FEA integrate with?
FEA provides standard integration with ION’s CTRMs to streamline business processes. FEA also has the ability to integrate with any third-party solution through APIs.
How does utilizing advanced commodity analytics drive profit and empower your organization?
Advanced analytics powers every phase of the valuation process, including optimization, digitalization, reporting, and machine learning/artificial intelligence. Every role in your organization can utilize advanced analytics to make decisions. Some examples include:
- Traders can conduct more profitable trades and deals.
- Risk managers can ensure maximum profitability and minimize exposure.
- Schedulers can ensure maximum mode, route, and storage optimization.
- Accountants and back-office professionals can actualize, settle, and calculate cash flow in real time.
Latest Commodities awards
Energy50 2022
RiskTech100 2022
Energy Risk Awards 2022
Stevie Awards 2022
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