Initially, the index will be composed of weather futures contracts of 15 US cities traded on the Chicago Mercantile Exchange (CME). There is no limit to the number of cities which can be included in the index. To be eligible for inclusion, the volume of futures traded for any given city must represent 1% or more of the total weather derivatives contracts traded on the CME. UBS says that cities from Europe and Asia will join the index in the medium term.
Ilija Murisic, Executive Director, Hyb