As part of its weather derivative product offering the Chicago Mercantile Exchange (CME) allows interested parties to participate in their market for hurricane futures and options. Users can access exchange traded hurricane futures and options based on the CME Hurricane Index (CHI), a proprietary index originally developed by the ReAdvisory group of Carvill America, Inc. and […]
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The Chicago Mercantile Exchange (CME) has for a number of years been offering hurricane futures and options to anyone seeking to hedge the risks of landfalling hurricanes impacting their bottom line. Users of these contracts are generally re/insurers, some hedge funds, ILS funds and investors with exposure to specific storms and certain corporates with hurricane […]
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Use and trading of hurricane derivatives is approaching record levels already this year with nearly a month of the Atlantic hurricane season still to play out. Demand for hurricane derivatives, which provide a hedge against storms making landfall along parts of the U.S. coastline has grown this year according to this article from the Wall […]
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