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Bright future for weather derivatives, finds survey

Energy Risk has completed its inaugural weather derivatives survey and the results show that traders appear to be confident about the state of their business, despite high profile exits from the industry in recent years.

Just over seventy risk traders, brokers, data providers and end-users contributed to our inaugural survey.

One of the key findings of the survey was that almost 90% of those polled believe that the weather risk market is larger than the Weather Risk Management Association (WRMA) would have us believe. Two months ago WRMA reported that the total notional value of the market was $4.6 billion

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