New eastern seaboard and US north east wind futures have more trigger levels

Insurance Futures Exchange Services Ltd (IFEX) has listed Eastern Seaboard and North East US Tropical Wind Event Linked Futures (ELF) contracts on the Chicago Climate Futures Exchange (CCFE). The CCFE is a Commodity Futures Trading Commission (CFTC) regulated Designated Contract Market.

Neil Eckert, Chairman of IFEX and CEO of the Climate Exchange PLC (CLE) CEO, said: “These two new contracts are the latest stage in IFEX’s plans to offer a broad range of Event Linked Futures covering natural perils in the United States."

IFEX Event Linked Futures are binary contracts responding to insured losses and have the following Loss Trigger Levels: $10bn, $15bn, $20bn, $25bn, $30bn, $40bn, $50bn, $60bn, $75bn, $100bn. Contacts are listed for the 2009 and 2010 loss periods. The block trade minimum is now 25 lots, reduced from 150 lots. "The increased number of Loss Trigger Levels and the reduction in the block trade minimum to 25 lots are designed to make trading as attractive and convenient as possible,” Eckert said.

The new contracts have the same transaction fees ($5 per contract /half turn) and margin arrangements as IFEX’s existing US Tropical Wind ELFs.

Property Claims Services provides the insured loss estimates which trigger payments, as it does for the existing IFEX Nationwide, Florida and Gulf Coast Tropical Wind contracts.