Stuart Jones, business development manager for weather risk at Accord Energy, the trading subsidiary of UK energy firm Centrica, said he intends to “participate actively in the Liffe weather futures market". But Dudden could not divulge whether Accord was likely to be the first firm to buy a Liffe contract.
Liffe is initially targeting the energy, insurance and reinsurance industries – sectors already involved in the OTC market – but said in the long term it plans to market its contracts to retailers who may be affected by seasonal variations in temperature. The exchange is also considering the addition of other locations in Europe, the US and Asia. But any such plans will likely rely on the success of the current contract offerings.