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. -- www.cme.com
