Chicago Mercantile Exchange (CME) has announced plans to
launch a snowfall futures and options contract later in the
month. The announcement came just before record breaking snow
storms hit the US East coast last week.
The new contracts will be offered on two cities initially,
New York and Boston, beginning 27 February.
Felix Carabello, director, alternative investments at CME,
told FO Week that the move represented the exchange's
foray into precipitation contracts. It decided to focus on New
York and Boston first, he added, because those two cities have
received significant snowfalls over the past ten years.
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