Russian dealers have proposed an original method of struggle with the bad weather. Temperature or rainfall in a short time you can buy and sell for profit, writes in the Friday newspaper «Business Petersburg».
RTS stock exchange jointly with Roshydromet is going to put into circulation on the futures market a new security - futures on the weather. Now developed a specification of the instrument, that is, rules of work with it. Security can be a way of hedging (insurance) risks associated with the weather. To participate in trades in new futures can theoretically each, but they are intended, first of all, for companies whose activities are directly related to weather conditions. This agro-industrial enterprises, transportation, electric power, oil, gas and coal sectors.
Mechanism of working with the new securities is as follows: the costs tied to a particular parameter, which characterizes the weather conditions or phenomena such as temperature or rainfall. In fact, the paper is the forecast one selected property on a certain date. In term futures is fixed at a price that depends on the difference between the predicted indicator and its real value. Suppose, a farmer, fearing the loss which he can bring intense cold, acquires such a security, which «predicts» severe frosts. If fears were unfounded, the farmer receives a legitimate profit from their crops. Otherwise, he wins on futures.
The specialists are wary on account of the prospects of the new tool. They say, for example, the farmers still not actively use the usual types of insurance - what to say about such Exotica as futures on the weather.
The idea of trading weather is not new and is owned by the foreign financiers similar Trades futures in 1999 started on the Chicago Mercantile exchange. The most popular «commodity» was the temperature. Two years later, in 2001 novelty and Europeans. In Russia, however, say the analysts, there is no sufficient number of qualified experts mastering the skills to work with the new tool. Therefore, most likely, in the near future the strong frosts earn only manufacturers of radiators and padded jackets, concludes the edition.