قالب وردپرس درنا توس
Home / Insurance / TP ICAP launches an index for trade in climate change

TP ICAP launches an index for trade in climate change



(Reuters) – TP ICAP, the world's largest broker among retailers, said on Wednesday that it has launched a weather-based index that would allow financial risks linked to the pace of climate change.

Insurance companies and bankers are already monitoring specific local weather events precipitation near coffee plantations or hurricane risks in the Gulf of Mexico, but TP ICAP said they believed the index would be the first to track climate change globally.

While scientists have long kept an eye on data, the creation of an index allows the market to form an idea of ​​the rate of temperature change and build financial products to hedge the risks.

Launched in collaboration with the environmental data company Speedwell, the ICAP-Speedwell Climate Index would be based on data collected from 50 independent weather stations globally, it said.

Using a data set that is already 20 years old and will be updated daily, TP ICAP said that they expected a futures curve to be created that would allow counterparties to create financial structures with varying dividends over specific time periods.

"Many companies have significant and sometimes unquantified exposure to weather and climate risks," says Nicholas Ernst , CEO of Weather Markets, at TP ICAP. [1

9659002] The launch of the index comes before the next round of global climate negotiations in Glasgow, which begins on 31 October, urging governments to step up efforts to reduce greenhouse gas emissions from the planet. [19659007]
Source link