FEA Optimize assets and mitigate market risk with advanced analytics.

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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, following FEA hedging recommendations.

Why FEA

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 CMSs

  • 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 (for example, market, geopolitical, weather, and so on) on your portfolio.

    • Take appropriate risk mitigation action using advanced analytics and hedge recommendations.

    • Calculate the likelihood of events through different data analysis methodologies (for example, 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.

Latest Commodities awards

RiskTech100 2022

Commodity Trading

RiskTech100 2022

Commodity Trading Risk Management (CTRM)

Stevie Awards 2021

Customer Service Department of the Year

Energy50 2021

Overall Winner

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