CHICAGO, Feb. 22, 2011—Logical Information Machines, Inc. (LIM), a wholly owned subsidiary of Morningstar, Inc. (NASDAQ: MORN), today announced it will begin offering the KyCurve forward curve building tool powered by LIM data to clients. KyCurve is a powerful forward curve tool that produces various types of price curves to illustrate future commodity prices. KyCurve was developed by KYOS Energy Consulting, an independent consulting firm that specializes in energy trading and risk management based in The Netherlands.
The KyCurve tool produces daily, hourly, or monthly forecasts of energy prices using current price information, historical price patterns, and historical spot prices. The resulting curve graphs forecast prices of energy commodities at various future maturities. Through the agreement, LIM will provide its high-quality energy data for use within the KyCurve tool.
“Our agreement with KYOS greatly expands the scope of applications for our energy data, providing our clients with access to another valuable tool for developing price models to support their trading and investment activities and assists in meeting regulatory compliance standards. There is a high need in the market for forward curve applications, and by adding KyCurve to the suite of LIM’s tools and high-quality data, we’ve created a competitive bundled solution to better meet our client’s needs,” said Kishore Gangwani, president of LIM. “The addition of KyCurve expands and complements our own offerings of analytical tools, and represents one of the first third-party application providers we are working with to leverage the depth of our data.”
Advantages of the KyCurve tool include automated forward curve creation; the ability to create forward curves for mark-to-market, or the current market price value of the commodity; and end-of-day forward curves.
LIM aggregates data from all the major exchanges, the electricity system operators (ISOs), price-providing services, major commodity brokers, weather vendors, and other key data sources. In addition to gathering, processing, standardizing, inspecting, and distributing more than 100 million data points every week, LIM provides data management tools to store and quickly surface the data. In addition, clients have access to research tools for analyzing the markets, back-testing strategies, and charting models.
Morningstar acquired Chicago-based LIM, which provides data, analytics, and research primarily in the energy, commodity, and financial sectors, in December 2009.
About KYOS Energy Consulting
KYOS offers specialized advice on trading and risk management in energy markets. Its expert team has years of experience in quantitative modeling and advisory services in commodity markets. KYOS’ sophisticated solutions are developed to support decision making, investment proposals and risk calculations. It has a broad customer base including the major players in the commodity markets. KYOS’ forward curve tool is one of the most sophisticated available in the industry and is used by many industry leaders.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 380,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 4 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. The company has operations in 26 countries.
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