It comprises a combination of weather and emissions asset classes and is the first integrated index that allows market participants to obtain an exposure to greenhouse gas emissions and their impact on the weather.
The UBS-GHI is constructed using liquid, actively traded futures contracts.
Weather exposure is derived from Heating Degree Day (HDD] and Cooling Degree Day (CDD) futures contracts traded on the Chicago Mercantile Exchange (CME).
Emissions exposure is provided by carbon credits
- Brexit novations ‘on hold’ to gain reg relief
- People moves: Bank of America names new Apac chiefs, Wilkinson leaves LGIM, Lloyds loses Coutte, and more
- Mifid data publishers drag feet on Esma guidelines
- Sefs, Libor fallbacks and risk governance in Asia
- Banks hope final FRTB rules will ease NMRF burden