CME Group Lists Weather Contracts on Seven New Cities
Last update: 10:00 a.m. EDT May 19, 2008
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CHICAGO, May 19, 2008 /PRNewswire-FirstCall via COMTEX/ -- CME Group, the world's largest and most diverse derivatives exchange, announced that it is expanding its suite of temperature-based products and is offering weather contracts on six U.S. cities and one European city. Cooling Degree Day contracts are available for trading starting today with Heating Degree Day and Weekly contracts to start in June and July, respectively.
The new cities include Oslo, Norway; Little Rock, Ark.; Los Angeles, Calif.; Colorado Springs, Colo.; Jacksonville, Fla.; Raleigh, N.C.; and Washington DC bringing the total number of city-based temperature contracts to 42.
"Adding these new cities to our weather complex furthers our commitment to our customers to offer an even broader range of options to manage risk associated with the weather," Felix Carabello, Director of Alternative Investment Products at CME Group, said. "These contracts enable energy and utility companies, retailers and others that face business uncertainty as a result of unusually hot or cold temperatures to transfer their exposure to the capital markets."
With the addition of these new contracts, CME Group will offer weather contracts based on aggregate temperatures for 42 cities, including 24 throughout the U.S., 10 in Europe, six in Canada and two in Japan. CME Group also lists products used to hedge risk associated with hurricanes and snowfall. For more information on CME Group weather contracts, please go to cmegroup.com. |
