For many companies working in the energy and commodity markets, the overall end of day process can represent a huge liability. Often the internal processes and analysis behind curves construction and integration is built on fragile spreadsheet systems; meaning they are not auditable and lack security. They can still be highly manual and typically are difficult to validate.
To tackle this problem, we have developed the ZEMA Suite’s Curve Manager – an automated workflow engine designed to efficiently manage the curve creation, validation and integration processes.
So how are forward curves constructed using ZEMA’s Curve Manager?
The process typically starts in Market Analyzer, where complex analysis can be performed on a variety of data sources that have already been collected, validated and normalized through ZEMA. Market Analyzer includes a number of specialized curve building methodologies such as arbitrage free, discounting, blending, and boot strapping on top of the already expansive list of functions for shifting, shaping, and basic arithmetic. Figure 1 below shows an example of the type of analysis that can be performed in Market Analyzer to create curves. Curve Manager then takes this analysis and automates the creation of the curves, validates the curve values, and distributes it to downstream systems. Once a curve has been built it can also be used as an input source to build other curves.
Book a demonstration today to learn more about the Curve Manager and the ZEMA Suite.