Market Participants
A wide range of capital providers make markets in weather risk. To date the weather risk management trading market is primarily made up of dedicated weather trading operations, such as Nephila Capital Ltd, Galileo Weather Risk Management Advisors LCC, Swiss Re, RenRe, and Coriolis Capital, who execute trade orders in weather or weather-contingent commodity trades, the trading desks of financial institutions and utilities, such as Susquahanna Energy and Aquila who hedge their own risk as well as speculative trades for a merchant portfolio, professional commodity traders, such as RJO and hedge and private equity funds such as Tudor Capital. Transactions can be effected over-the-counter (OTC) or on commodity exchanges such as The Chicago Mercantile Exchange (CME). Still other operations, such as Storm Exchange, Inc and WeatherBill, provide corporate and municipal clients with the necessary financial context to gauge the impact of the weather on profit and loss before executing trades either OTC or through the CME.
Read more about this topic: Weather Risk Management
Famous quotes containing the words market and/or participants:
“I respect not his labors, his farm where everything has its price, who would carry the landscape, who would carry his God, to market, if he could get anything for him; who goes to market for his god as it is; on whose farm nothing grows free, whose fields bear no crops, whose meadows no flowers, whose trees no fruit, but dollars; who loves not the beauty of his fruits, whose fruits are not ripe for him till they are turned to dollars. Give me the poverty that enjoys true wealth.”
—Henry David Thoreau (1817–1862)
“A civilization which leaves so large a number of its participants unsatisfied and drives them into revolt neither has nor deserves the prospect of a lasting existence.”
—Sigmund Freud (1856–1939)