Three service providers have teamed to create the Weather Derivatives Starter Kit. OTC energy derivative trading network and solution provider YellowJacket; Newark, Calif.-based Risk Management Solutions; and Rockville, Md.-based weather consultancy MDA EarthSat Weather will combine their offerings to provide derivatives traders with a suite of services designed to enhance weather trading operations.
"The weather derivatives market is growing rapidly as ... financial firms and others use these instruments to drive trading volumes and hedge risk against weather exposure," said Jacob Pechenik, president and CEO of New York-based YellowJacket, in a release. "However, there is a shortage of knowledge pertaining to weather derivatives trading and how to get started."
The customizable Weather Derivatives Starter Kit offers services including the YellowJacket off-exchange energy derivatives trading network and platform, the Climetrix suite of weather-related risk management tools, and real-time access to MDA EarthSat's weather model.