Thomson Reuters today announced the launch of a new analytics tool on Thomson Reuters Eikon to help commodities traders and analysts predict prices in major European power markets.
The new tool, Power Curve, uses innovative visualization techniques to enable traders and analysts focused on European power markets to obtain real-time, fundamental fair value assessments of the Nordic and German power markets. This reduces time spent on research and analysis, enabling financial markets professionals to focus on higher-value tasks in the building and monitoring of trading strategies.
Germany and Nordics are two of the most liquid power markets in the world. Power Curve on Thomson Reuters Eikon provides commodities traders with an intuitive visual display of Thomson Reuters Power Curve Model, combining power supply data now available under REMIT (Regulation on Energy Market Integrity and Transparency) with real-time fuel prices, weather, available capacity information and Thomson Reuters proprietary supply and demand models, to provide a fair value assessment of the Nordic and German power markets. Quantifying the impact of such factors in the Power Curve Model provides traders with actionable insight, enabling them to adapt trading strategies quickly and accurately.
"Power markets are increasingly complex and news and price data alone are no longer adequate for traders to assess the fair value of power markets today. Understanding the impact of event-driven data such as weather, supply and demand changes and capacity information on power contracts is critical but also very time consuming," said Stefan Reichenbach, head of Commodities Research and Forecasts, Thomson Reuters.
"By adding event-driven market simulation models into Thomson Reuters Eikon, we are bringing together data from multiple sources, including data made available by REMIT, and providing energy professionals with a comprehensive visualization of how such events drive market outcomes. Recently when a German nuclear power plant came back on-stream earlier than anticipated, Power Curve visually illustrated how demand would be met by plants with lower marginal cost and correctly anticipated the €2 drop in power prices," added Reichenbach.
The Commodity Research and Forecasts service in Eikon has been created to provide key intelligence to help traders and analysts quickly identify market-impacting signals from a plethora of market data. The service provides weather, metals, agriculture and energy insight from a combined team of expert analysts from market-leading Thomson Reuters GFMS, Thomson Reuters Lanworth, Thomson Reuters Point Carbon and Thomson Reuters Weather Insight.