Chicago Mercantile Exchange (CME) last week said it was in discussion with New York Mercantile Exchange (Nymex) concerning how the two exchanges could work together to strengthen the ties between weather and energy contracts. Meanwhile, the Chicago exchange also described plans to expand its weather derivatives complex with contacts on six Canadian cities.
Weather futures and options on futures were to be made available for Calgary, Edmonton, Montreal, Toronto, Vancouver and Winnipeg from 6 November. Felix Carabello, director of alternative investment products at CME, told FO Week that the new contracts were created...