CHICAGO, March 12 /PRNewswire-FirstCall/ -- CME, the world's largest
and most diverse financial exchange, announced today that it is expanding
its suite of weather derivatives and rolling out CME Weekly Weather Index
futures and options on futures on 18 U.S. cities beginning April 2.
CME now offers Monthly and Seasonal Heating Degree Days (HDD) and
Cooling Degree Days (CDD) contracts on 35 cities around the world. The
contracts quantify weather in terms of degrees above or below monthly or
seasonal average temperatures and attach a dollar amount to the number of
degrees a month's or season's temperature deviate from an average value for
that particular city. The new contract will measure the deviations in terms
"By listing weekly weather contracts, CME is offering another
alternative for our customers to hedge their risk associated to weather,"
Felix Carabello, Director of CME Alternative Investment Products, said. "In
addition to monthly and seasonal hedges, customers will now have the
opportunity to have more defined hedges on a shorter time frame. This
flexibility allows for multiple options to fit a variety of risk management
Six of the CME Weekly Temperature contracts are scheduled to be
launched on April 2, including for Atlanta, Boston, Chicago, Cincinnati,
Dallas and New York City. On April 16, CME Weekly Temperature contracts
will be added for Baltimore, Des Moines, Detroit, Houston, Kansas City, Las
Vegas, Minneapolis-St. Paul, Philadelphia, Portland, Sacramento, Salt Lake
City and Tucson.
The futures contracts will trade only on the CME Globex(R) electronic
trading platform from 5 p.m. to 3:15 p.m. Chicago time the following day.
Trading on all of the contracts will terminate at 9 a.m. Chicago time on
the first Exchange business day that is at least two calendar days after
the last calendar day of the respective contract period. Options on all CME
weather futures will be traded on CME's trading floor from 8:30 a.m. to
3:15 p.m. Chicago time.
CME currently lists weather contracts based on aggregate temperatures
for 35 cities, including 18 throughout the U.S., nine in Europe, six in
Canada and two in Japan. CME introduced weather derivatives in 1999. In
2006, nearly 800,000 weather contracts worth a notional value of $21
billion traded at CME. For more information on CME weather contracts,
please go to http://www.cme.com/weather .
CME ( http://www.cme.com ) is the world's largest and most diverse
financial exchange. As an international marketplace, CME brings together
buyers and sellers on the CME Globex(R) electronic trading platform and on
its trading floors. CME offers futures and options on futures in these
product areas: interest rates, stock indexes, foreign exchange,
agricultural commodities, energy, and alternative investment products such
as weather, real estate and economic derivatives. CME is a wholly-owned
subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, Nasdaq:
CME), which is part of the Russell 1000(R) Index and the S&P 500(R) Index.
Statements in this news release that are not historical facts are
forward- looking statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or implied in any forward-looking
statements. More detailed information about factors that may affect our
performance may be found in our filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K, which can
be obtained at its Web site at http://www.sec.gov . We undertake no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
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are trademarks of Chicago Mercantile Exchange Inc. CLEARING 21 is a
registered trademark of CME and New York Mercantile Exchange, Inc. S&P, S&P
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Return Asset Contracts and other trade names, service marks, trademarks and
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herein under license. Further information about CME and its products is
available on the CME Web site at http://www.cme.com .