UBS has launched the UBS Global Warming Index (UBS-GWI), a tradable benchmark for global investments in the weather derivatives market.
The UBS-GWI is constructed using liquid, actively traded Heating Degree Day (HDD) and Cooling Degree Day (CDD) weather futures contracts. HDD and CDD weather futures contracts settle on the difference between the average daily temperature and a given base temperature.
Initially, the index will be composed of weather futures contracts of 15 US cities traded on
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