Thai Floods May Prompt Water Futures Trading
source: http://www.bloomberg.com/news/2011-12-14/worst-floods-in-70-years-prompts-thailand-to-consid...
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Thailand may start trading of water derivatives, giving investors a means of hedging against disasters after the nation’s worst floods in almost 70 years, the Securities & Exchange Commission said.
The regulator is studying the possibility of introducing contracts whose value would be linked to rainfall, or the level of water in the nation’s major dams, said Vorapol Socatiyanurak, who started as secretary-general of the SEC in October. He declined to say when trading might begin.
The total face value of global weather-related derivatives grew by 20 percent between 2010 and 2011 to $11.8 billion, according to a May 20 report by the Washington DC-based Weather Risk Management Association. Demand growth was seen in contracts related to rainfall, snow, hurricanes and wind from industries such as agriculture, construction and transport, it said.
The majority of weather contracts are traded on the Chicago Mercantile Exchange. (CME) CME snow contracts, for example, are based on the exchange’s Snowfall Index, a measure of average monthly snowfall in certain U.S. cities. Traders “determine what amount of snowfall would be detrimental to their businesses and take futures or options positions based on that,” the exchange said on its website.
The risk for Thai water derivatives “would be a lack of trading liquidity,” said Joe Vongkitbuncha, head of equity and structured derivatives at Asia Plus Securities Pcl, the nation’s third-biggest stock brokerage by market value. Still, the contracts may be useful to big conglomerates, whose supply chains and manufacturing “rely heavily” on business continuity, and to agricultural businesses, he said.
more at link...
This is all part of Al Gore's Global Climate Scam. These eco-fascists are trading CO2, they're trading H20...they're even trading snow and it has nothing to do with saving the environment or helping people. Its about controlling, taxing and trading every resource on Earth, consolidating power and installing their New World Order/One World Government.
The regulator is studying the possibility of introducing contracts whose value would be linked to rainfall, or the level of water in the nation’s major dams, said Vorapol Socatiyanurak, who started as secretary-general of the SEC in October. He declined to say when trading might begin.
The total face value of global weather-related derivatives grew by 20 percent between 2010 and 2011 to $11.8 billion, according to a May 20 report by the Washington DC-based Weather Risk Management Association. Demand growth was seen in contracts related to rainfall, snow, hurricanes and wind from industries such as agriculture, construction and transport, it said.
The majority of weather contracts are traded on the Chicago Mercantile Exchange. (CME) CME snow contracts, for example, are based on the exchange’s Snowfall Index, a measure of average monthly snowfall in certain U.S. cities. Traders “determine what amount of snowfall would be detrimental to their businesses and take futures or options positions based on that,” the exchange said on its website.
The risk for Thai water derivatives “would be a lack of trading liquidity,” said Joe Vongkitbuncha, head of equity and structured derivatives at Asia Plus Securities Pcl, the nation’s third-biggest stock brokerage by market value. Still, the contracts may be useful to big conglomerates, whose supply chains and manufacturing “rely heavily” on business continuity, and to agricultural businesses, he said.
more at link...
This is all part of Al Gore's Global Climate Scam. These eco-fascists are trading CO2, they're trading H20...they're even trading snow and it has nothing to do with saving the environment or helping people. Its about controlling, taxing and trading every resource on Earth, consolidating power and installing their New World Order/One World Government.
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- groups:
- Green, Economy, Climate Gate
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- tags:
- Green, Environment, Economy, Climate Change, 8 more
