weather trading

Recognising the need for industries to be able to hedge their weather risks using robust data and indices, alongside exchange listing and trading, the National Meteorological Information Center of China and the Zhengzhou Commodity Exchange will work together to develop derivatives products such as weather index futures.

The trend towards greater frequency and severity of weather risk events in Europe, resulting in a higher risk of losses to insurers and reinsurers, requires an adjustment to the perception of risk as well as bespoke reinsurance solutions, Munich Re said this morning.

The world’s largest reinsurance firm Munich Re’s U.S. weather derivatives and energy commodities trading unit Munich Re Trading LLC complements the reinsurers core operations and is highly strategic to its parent, according to S&P.

Inter-dealer brokerage Tullet Prebon has hired a weather derivatives broker to its wholly owned subsidiary Tullett Prebon Energy. Peter Rosen joins the firm from his last role as a weather broker at ICAP and will report to Christopher Grosso, Director of Energy Products. He will be based in the firm’s Jersey City office.

The weather risk market demonstrated its diversity and growth at the recent Weather Risk Management Association (WRMA) 12th Annual European Meeting in Dusseldorf, Germany. Over ninety weather risk professionals from six continents and seventeen countries attended, demonstrating continuing global interest in weather risk hedging and making it the most diverse WRMA event yet.

Environmental Finance, the monthly magazine covering the impact of environmental issues on lending, insurance, investment and trading decisions, have published an interesting news article on the weather derivatives market today. The article shows that the recent hot weather across the U.S., which resulted in the fourth warmest July on record, has impacted weather derivatives trading […]

We wrote last week that some weather traders are taking advantage of the recent heat wave across the U.S. to profit from making the right choices with their weather derivative contract purchases. The high temperatures caused some weather derivative contract prices to soar on the Chicago Mercantile Exchange (CME) allowing traders to cash in.

The U.S. has been suffering from unusually high temperatures, dry weather and heatwaves across many regions in recent days and weeks. High temperatures mean weather traders are busy as companies and traders seek to hedge their weather risks using instruments such as weather derivatives.