Saturday, October 16, 2010

Rainfall Derivatives Coming to CME

The CME Group announced "it will begin listing and trading rainfall futures, options on futures and binary options."  CME Group's Managing Director of Agricultural Commodities and Alternative Investments stated:

"A significant number of industries, from agribusiness to recreation, are reliant on good weather, but also are at the mercy of bad weather. Rainfall contracts, in conjunction with our existing suite of weather products, will allow these businesses to manage the resulting risk."

Contracts locations include Chicago O'Hare International Airport, Dallas-Fort Worth International Airport, Des Moines International Airport, Detroit Metro Airport, Jacksonville International Airport, Los Angeles Downtown USC Campus, New York LaGuardia Airport, Portland International Airport and Raleigh/Durham International Airport.

This product will be a great benefit for all who recreate or grow crops at the airport.  Others can effectively gamble there, courtesy of the CME Group.

P.S. Did CME Group board member Jackie Clegg Dodd vote for the new product offering?  Husband and Senator Chris Dodd will soon search for employment?  What happens when rainmaker Chris lands in any of the nine cities?  Bet on money pouring into his pocket.  It's already gushing Jackie's way.

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