Fair weather future

Exchange-based weather futures have often failed to make an impact. Hex, TheHelsinki securities and derivatives exchange, which launched weather futuresin August 2002, has cancelled its contracts following its failure to attractany interest in the offering. And the London International Financial Futuresand Options Exchange (Liffe) has also terminated its European weather contractsfollowing lacklustre demand.

But the Chicago Mercantile Exchange (CME), which has enjoyed considerable

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