TFS weather auction successful

Interdealer broker TFS Energy's weather derivatives desk has completed another successful Dutch auction for an end-user wishing to hedge cool weather exposure in Chicago.

Temperature-based derivatives pay out cash according to the deviation from a base temperature over a set period of time. Exchange-traded contracts typically pay out around $1,000 to $5,000 per degree of deviation.

In this deal, however, the buyer was able to obtain a payout of $90,000 per degree deviated, for the period of Ju

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: