Tiffe ponders weather derivatives contracts

The Tokyo International Financial Futures Exchange (Tiffe) plans to list Japanese weather contracts, and is in talks with several parties over the contract details and marketing processes, a Tiffe official said.

“The detail and the launch date have not been decided yet. We are now negotiating with several leading participants in Japanese OTC trades about the contract details and processes of the marketing,” says Ryoji Iketani, the official in charge of developing weather contracts at Tiffe.

Tiffe’s plan to launch weather contracts follows an announcement by the Chicago Mercantile Exchange (CME) that it will launch Tokyo and Osaka weather derivatives contracts on July 26, the first of such contracts to serve an Asian market.

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