Chicago Mercantile Exchange (CME) last week said it was in
discussion with New York Mercantile Exchange (Nymex) concerning
how the two exchanges could work together to strengthen the
ties between weather and energy contracts. Meanwhile, the
Chicago exchange also described plans to expand its weather
derivatives complex with contacts on six Canadian cities.
Weather futures and options on futures were to be made
available for Calgary, Edmonton, Montreal, Toronto, Vancouver
and Winnipeg from 6 November. Felix Carabello, director of
alternative investment products at CME, told FO Week
that the new contracts were created because of demand by large
Canadian energy and power companies that wanted to hedge
weather risk in their energy portfolios.
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