Evolution Markets launches weather desk

The firm has hired two new staff to lead the weather desk. Bill Young, previously senior vice-president of environmental products at rival broker Prebon Energy, will run the desk as vice-president of weather markets. He will work with Nicholas Ernst, who becomes director of weather markets. Ernst joins from Enron, where he was active in the company’s metals division.

“The weather market is at a critical point," said Andrew Ertel, president and chief executive of Evolution Markets. "It has shown significant growth and there is a wide array of derivatives products. However, there has been a reshuffling of the major players and a new set of end-users is starting to embrace weather derivatives for risk management.”

A survey released by consultants PricewaterhouseCoopers and industry body the Weather Risk Management Association (WRMA) in June found that 4,000 weather derivatives contracts, with a notional value exceeding $4.3 billion, were traded worldwide in 2001, a significant increase from the previous year.

But a number of US energy majors have scaled back their activities in the weather markets in recent months, as the fallout from Enron’s bankruptcy continues to disrupt that industry.

Evolution Markets brokered what it claimed was the first weather deal, a heating degree day swap between energy majors Koch Energy and Enron, in 1996.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here