Lynda Clemmons: weather derivatives will benefit from regulation changes

Weather derivatives and financial products used to hedge climate-related risk such as energy consumption, will benefit from proposed changes in derivatives trading legislation, according to Lynda Clemmons, the former Enron weather derivatives pioneer, speaking at the Energy Risk USA conference in Houston this week.

“If over-the-counter derivatives products moved onto the exchange, this could have a very positive impact on weather derivatives,” Clemmons said.

Many participants in the industry are