Warming to the exchanges

Weather derivatives may not be the most widely traded product on exchanges, but new initiatives and strong trading volume at the Chicago Mercantile Exchange bode well for the development of a mature exchange-traded market. Paul Lyon reports

The burgeoning success of the Chicago Mercantile Exchange (CME) in the weatherderivatives market is good news for those who want to see a mature exchange-tradedweather market. And the CME is not the only company making headway on this front.

US patent application number 20030126155 of July 3, 2003 makes the case for a “tradableinvestment index and method for weather futures, comprised of weather data transformedusing the steps of extracting historical weather data, including weather

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