Risk Management Solutions (RMS), a California-based provider of software for the management of natural hazard risks, has begun publishing daily weather market price data on the internet.Weather market indexes based on the number of heating degree days – a method of comparing daily temperature with a seasonal average – are now available for Chicago, New York and London. The numbers should represent the strike price on a weather derivatives contract that provides a hedge against un-seasonal temperatures.
“Until now, the only way people could get this information was by phoning a broker,” said Steve Jewson, director of business development at RMS in London. “We wanted to provide an electronic data service that is independent of the market.”
RMS said it produces the data by surveying, on a daily basis, leading weather derivatives traders that represent a majority of the market. Jewson added that the data is not representative of values that can actually be traded but are indicative of what a broker should offer.
The data can be accessed from RMS’s weather risk website, climetrix.com.
Sign up for Risk.net email alerts
Singapore, 22nd - 23rd Jul 2014
Australia, 12th - 13th Aug 2014
UK, 10th - 12th Sep 2014
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.