Friday, June 29, 2007


The NORDIX Financial Wind Indexes are composed of deviations from 20-year historical wind speed averages compared with present daily figures.

USFE will initially list seven index futures contracts based on two wind regions in New York and five wind regions in Texas as defined by the National Oceanic and Atmospheric Administration’s (NOAA) National Center for Environmental Prediction division.

USFE and Weather Bid also plan to develop a comprehensive suite of futures contracts for the benefit of renewable energy, including hydro, solar, geothermal and biomass, and will work closely with renewable energy advocacy groups to promote the new contracts.

From the USFE

If betting on the wind isn't enough action for you, another USFE product might soothe the fever:


USFE's Binary Event Futures (BEF) allow traders to take a "yes" or "no" position on whether or not an event will take place on or by a specified date. The buyer of this futures contract holds the right to collect a fixed cash payout if the defined event occurs.

USFE's contracts are designed by the exchange to be easily understood and clearly defined. The "event" in question for each contract is established by exchange rules prior to listing, and may be associated with a financial, commercial or economic consequence. These fixed rules dictate if and when the contract is settled prior to expiration.

If the event occurs, a BEF contract buyer is entitled to a fixed payout from the contract seller. All settlements occur and are guaranteed by USFE's clearing house, The Clearing Corporation.

For example, USFE's first set of BEF contracts are based on the Chicago Board of Trade's (CBOT) proposed merger with either the Chicago Mercantile Exchange (CME) or the IntercontinentalExchange (ICE). There are two contracts reflecting these events: Should you purchase one FECC contract, and the CBOT does in fact merge with the CME on or before Dec. 3, 2007 (as defined in the contract specifications), you are entitled to the full contract value. The same result would occur if the CBOT merged with ICE on or before Dec. 3, 2007 for the FECI contract.

Again, from the USFE