The WRMA helps companies manage the extent to which their revenue is affected by uncontrollable weather patterns according to their website. The president of WRMA, Brian O’Hearne commented on the tremendous growth, “These numbers are a tremendous validation of our business. The explosive growth we are experiencing is a result of companies realizing the importance of the weather market as well as its interdependence with the commodity markets, particularly energy and the ability to hedge commodity price risk in the weather market.”
The amount of weather contracts listed on the Chicago Mercantile Exchange (CME) has “more than quadrupled in the survey period” and over the past two years “volumes rose from 4,400 contracts traded in 2002, to more than 1,000,000 contracts traded this survey ending March 2006.”
If you are involved in this industry let us know your experience and outlook for the future.
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