Snowfall futures - I have seen it all....

Discussion in 'Financial Futures' started by daddyeaux, Feb 9, 2006.

  1. I live in a land of boundless opportunity and bubbles of all manner and description.............

    Chicago Merc to Trade Snowfall Futures

    AP Business Writer

    CHICAGO (AP) -- First came temperature futures, then frost-day futures. Now - futures involving how much snow falls at Logan Airport in Boston or New York's Central Park.

    In the latest evidence that almost anything goes in the marketplace, meteorologically speaking, the Chicago Mercantile Exchange said Thursday it will begin trading snowfall futures and options contracts later this month.

    The world's largest derivatives exchange said the new product, which will trade electronically starting Feb. 26, should help cities manage risk associated with snow accumulation. Insurance companies, retailers and other businesses with a lot riding on the weather also can use the futures to hedge their risk.

    "The impact of weather can influence regional and local markets, playing a critical role in the overall economy," said Rick Redding, the exchange's managing director of products and services. "CME weather futures provide the safety and soundness investors are seeking to manage their weather-related risk."
  2. I'm waiting for futures on my regularity.....
  3. Hmm..., Geometric Brownian Motion, makes perfect sense! :D
  4. mahras2


    Futures on the size of Playmate's breasts coming to an exchange near you. Will allow investors and traders to manage their hormone related risks!
  5. I looked into some of those rainfall futures, but there was no liquidity...............:(
  6. I wonder if the airport weathermen could be paid off under the table to................

  7. CME is becoming worse than the real casinos. At least in Vegas you have fun. The CME has sharks to skin you.
  8. CDNPatriot

    CDNPatriot Guest

    Risktaker how do you have fun in Vegas if Vegas was designed to empty your pockets.

    Vegas = playing into something designed to make you a loser

    Markets = speculating in an attempt to sell your financial instrument at a higher price to someone else in the future. There is no design in the markets that ensures there will not be a buyer to buy you out. There may be a lot of obstacles (ie time, money, entry costs to play, unforseen circumstances etc...) but the possibility to outplay the market or match the market in the long run is there.
  9. Vegas fun- Music shows, scantilly clad females, swimming pools, the actual act of pulling the handle and watching the wheel spin, traveling to Vegas, scantilly clad females, traveling to/from Vegas, not having any of my kids around, smoking a cigar, did I mention the scantilly clad females? If you play long enough, they take your money.

    Markets- Staring at a computer screen, no scantilly clad females. If you play long enough, they take your money.

  10. There's actually a legitimate purpose for these contracts and they're pretty common in the OTC market.

    #10     Feb 11, 2006