“By offering a variety of ways to participate in the weather markets, we believe our products will appeal to a broader spectrum of market participants, including reinsurance companies, hedge funds and commodity trading advisers,” said CME president and chief executive Jim McNulty.
The growth of the CME’s weather futures products has confounded sceptics who said the market was not ready for exchange-traded contracts. Other exchange-traded contracts have, however, struggled to take off. The London International Financial Futures and Options Exchange has only traded one contract of five lots since launching in December 2002. And Atlanta-based Weather Board of Trade is still to go live, following various funding and member commitment problems.