Climetrix Weather Derivative Trading System Hits One Million Licensed Analyses

Risk Management Solutions (RMS) has announced that the Climetrix weather derivative pricing and portfolio management system passed a milestone of one million licensed analyses last week. Since the debut of Climetrix version 1.0 in July 2000, the weather derivatives market

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Risk Management Solutions (RMS) has announced that the Climetrix weather derivative pricing and portfolio management system passed a milestone of one million licensed analyses last week.

Since the debut of Climetrix version 1.0 in July 2000, the weather derivatives market has seen significant changes. The market is now more dynamic than ever in terms of traded structures and market participants, as numerous hedge funds and financial institutions have set up desks to trade weather derivatives.

“Over the past five years RMS has seen the weather market undergo rapid growth, take steps backwards, and begin to grow again,” said Jeff Hamlin, manager of client services at RMS. “RMS has continually adapted Climetrix to the needs of participants in the market, through working with established weather desks that have been trading weather for over five years, as well as new desks that have just started trading. We would like to thank our many clients in the U.S., Europe, and Japan for their ongoing support of the Climetrix system and their role in achieving this milestone of 1 million licensed analyses.”

Jeff Bortniker, a weather market veteran and managing partner at start-up hedge fund Pyrenees Capital Management said, “Before we could start trading weather, our investors required that we have access to an independent, third- party application that could be used for performing regular valuation and risk analysis of our portfolio of weather trades. Since Climetrix is the market standard for these types of services in the weather market, licensing Climetrix provided our investors with the level of comfort they needed for us to begin trading.”

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