News Release

CME Group Expands Its Suite of Weather Contracts Into Australia

Wed Feb 04 2009

CHICAGO, Feb. 4 /PRNewswire-FirstCall/ -- CME Group, the world's largest and most diverse derivatives exchange, today announced it is expanding its suite of temperature-based products to include the Australian cities of Melbourne, Sydney and Brisbane. The new listings will begin trading on Monday, February 23, 2009, and include Heating Degree Day (HDD) and Cooling Degree Day (CDD) contracts on both Monthly and Seasonal futures and options. The contracts will trade on a monthly basis from January through December and will be priced in Australian dollars.

 

"We continue to work closely with a broad group of customers, including energy companies, retailers and municipalities to develop and expand our weather derivative products to help manage their weather-related risk," said Felix Carabello, Director of Alternative Investment Products at CME Group. "Like our other temperature-based products, these Australian contracts enable industries that face business uncertainty as a result of unusually hot or cold temperatures to transfer their risk exposure to the capital markets."

 

With the addition of these new contracts, CME Group now offers weather contracts based on aggregate temperatures for 45 cities, including 24 throughout the U.S., 10 in Europe, six in Canada, three in Australia and two in Japan. CME Group also lists products used to hedge risk associated with hurricanes, snowfall and frost. Trading volume in CME Group weather derivatives reached 776,397 contracts in 2008. For more information on CME Group weather contracts, please go to: http://www.cmegroup.com/weather

 

 

About CME Group

 

CME Group (www.cmegroup.com) is the world's largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing virtually eliminates counterparty credit risk. CME Clearing also offers $7 billion in financial safeguards to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol "CME."

 

The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex, E-mini and CME ClearPort are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX and New York Mercantile Exchange are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at www.cmegroup.com.

CME-G

SOURCE: CME Group

Web site: http://www.cme.com/

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