Speedwell Weather, a provider of weather data, forecasts, analytics, software and consultancy to the weather risk management and derivatives market, has launched a new platform which it hopes will help facilitate weather hedging for energy industry players.
The Speedwell-Market brings together tools and data to help energy market participants make better weather hedging decisions.
The platform covers sixty key weather risk markets in the USA, Europe and Australia and will show users monthly and seasonal structures for contracts based on HDD, CDD and Cumulative Average Temperature.
David Whitehead, Co-CEO, commented on the launch; “Speedwell Weather is committed to increasing the transparency and liquidity across the weather risk market. The Speedwell-Market platform has been designed to support weather risk transfer across a range of different contracts for a variety of different periods.
“As the dominant provider of Settlement Data for parametric weather risk contracts worldwide, we are keen to support the trading of the more standardized energy-market based contracts which remain an important part of the weather risk market by making tools, historic data and Settlement Data available for no charge”.
“Speedwell-Market is the first stage of a major new initiative bringing together Speedwell’s unrivalled library of weather data, Settlement Data services, and Speedwell’s messaging layer and SWS software tools which we will be rolling out in the next 12 months,” added Michael Moreno, Co-CEO and CTO.
Speedwell’s weather data and settlement services are already being used by a number of ILS fund managers and collateralized markets that invest in weather risk positions, or underwrite collateralized parametric weather risk contracts.
The new service will benefit ILS managers and investors who are looking to enter the weather market, with greater access to data and information about the contracts available likely to help educate ILS players, especially about the energy related opportunities.
It will also offer energy market players, who are potential cedants, a better view of the weather risk transfer options available to them.
The Speedwell-Market includes:
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Data
- Cleaned historical data (daily maximum and minimum temperature).
- Recalibrated data which adjusts historic observations for discontinuities such that the time series is in-line with current reporting conditions.
- Real Time Monitor for detecting observation discontinuities in real-time
- Settlement Data (daily maximum and minimum temperature).
- Settlement Certificates showing final settlement values for each contract type for each month for each reference site.
Tools
- Access to the Speedwell-Market Futures Dashboard showing modelled fair- value price estimates, forecast pricing impact, and forecast delta impact.
- Access to model-based prices and volatility data to assist any requirements for bi-lateral margining.
- Access to SWSConnect web-based pricing tool.
- Speedwell-Market Data Feed Notifications.
Documentation
- Settlement Data specifications – Data delivery schedule and quality control methods used for the production of Settlement Data.
- Contract Definitions – Contract specifications detailing data sources and calculations.
- Reference site metadata – Weather station identification and reporting conventions for each market.
