Weather risk

Weather risk: gauging the exposure

There is now an array of instruments available to hedge weather exposure, but evaluating that exposure is far harder than quantifying standard exposures such as commodity price risk. Garth Renne and Shaun Hatch discuss approaches to analysing wind and…

First snowfall trade cleared on CME

Choice Environmental, a portfolio company of OTC Global Holdings (OTCGH), has brokered the first CME-cleared snowfall hedging risk instrument – a snowfall binary option contract for Detroit.

Growing up fast

Weather trading is seeing strong volume growth in the US, largely due to the influx of hedge funds into the market. Why such a big increase in interest, and what sort of strategies are the funds adopting? By Joe Marsh

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