Numerix and JERA Partner to Support the Evolution of Japan’s Power Derivatives Market
Numerix, a leading capital markets quantitative analytics technology provider, announced a collaboration with JERA Co., Inc. (“JERA”), Japan’s largest power generation company and a central participant in Japan’s energy market, focused on supporting the continued development of the country’s power derivatives market.
Through this initiative, JERA is implementing Numerix’s CrossAsset Excel and CrossAsset Python SDK to establish and maintain a comprehensive valuation and risk analytics framework tailored to the flexibilities embedded across JERA’s power value chain. The platform enables consistent valuation and scenario analysis across a wide range of power derivative structures, supporting risk management in an evolving market environment. The framework is designed to leverage modern high-performance computing, including GPU-accelerated Monte Carlo simulation, enabling faster, large-scale risk and scenario analysis without increasing operational complexity.
As Japan’s electricity market continues to develop, JERA’s participation across the full power value chain, from fuel procurement and power generation to wholesale electricity and gas sales, requires consistent evaluation and risk analysis across a wide range of activities. In this environment, robust and transparent analytics capabilities support effective risk management across JERA’s integrated operations.
“At the core of this collaboration is Numerix’s derivatives analytics library, which offers extensive model coverage, flexible payoff scripting, and high-performance Monte Carlo simulation,” said Tom Lin, Chief Revenue Officer at Numerix. “These capabilities support JERA’s ability to evaluate complex power derivatives efficiently and consistently, helping to strengthen evaluation and risk analysis as Japan’s power market evolves.”
Numerix’s stochastic analytics engine is purpose-built to value, optimize, and risk-manage generation assets at granular time intervals, down to hourly and half-hourly resolution. For JERA, this supports modeling of generator optionality across dispatch and must-run regimes, sensitivity analysis across fuel and power price movements, and optimization under real-world operational constraints, informing profitable dispatch decisions, hedging of fuel and power exposures, and quantification of risk under uncertainty.
By deploying an advanced derivatives analytics framework designed for complex instruments, JERA is strengthening its valuation and risk analysis capabilities for Japan’s power derivatives market. The initiative reflects a broader shift toward more enhanced risk and valuation practices as the Japanese electricity market continues to evolve.
“By working with Numerix, we are strengthening our ability to consistently evaluate complex power derivatives and assess risk across our value chain,” said Shinichiro Uragami, General Manager, Risk Modeling, Risk Management in Optimization Division at JERA. “This initiative supports informed decision-making as Japan’s power market continues to develop.”
This collaboration is an early example of how advanced quantitative analytics can support the continued evolution of Japan’s power derivatives market.
About Numerix: Since its founding in 1996, Numerix has been at the vanguard of financial technology, providing groundbreaking expertise, quantitative analytics, and software that redefines pricing and risk management in the financial markets. With the strategic acquisitions of FINCAD, Kynex, and PolyPaths, Numerix has further strengthened its leadership position, empowering financial institutions worldwide to transform risk into opportunities with confidence.
Numerix is headquartered in New York City, with offices around the world in major financial centers that allow immediate access to the latest trends, innovations, and thought leaders in the industry. This extensive network across the Americas, EMEA, and Asia-Pacific enables Numerix to offer localized support and services to its diverse clientele while drawing on global insights and expertise.
About JERA: JERA is an energy company that participates in the entire value chain ranging from upstream development, fuel procurement and power generation to wholesale sales of electricity and gas.
As a global company with the largest power generation capacity in Japan and one of the largest fuel handling capacities in the world, JERA will solve global energy issues and lead the way in realizing a decarbonized society.