Looking back: El Niño boosts weather derivatives

Liquidity in the OTC weather derivatives market has suffered repeated false starts over the years, including one reported by Energy Risk in December 1997 with the onset of the El Niño weather pattern

Looking back - El Nino boosts weather derivatives

The appearance this year of the El Niño weather pattern, the periodic warming of the tropical Pacific Ocean by a few degrees, is leading to a burst of interest in weather derivatives – financial contracts designed to protect company profits from the costs of extreme weather. Meteorologists believe the current El Niño could be one of the strongest on record and expect its worldwide effects to peak during the North American winter of 1997–98.

Bruce Reed, vice-president of product development at

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.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

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