AER Launches Hurricane Tracking Service for Trading CME Futures and Options Contracts.hCast-SR([TM]) Helps Insurance, Energy, and Retail Markets Mitigate Risk Caused by Hurricanes LEXINGTON, Mass. -- Atmospheric and Environmental Research, Inc. (AER) a leader in climate and weather forecasting weather forecasting Prediction of the weather through application of the principles of physics and meteorology. Weather forecasting predicts atmospheric phenomena and changes on the Earth's surface caused by atmospheric conditions (snow and ice cover, storm tides, floods, , is pleased to introduce hCast-SR[TM], a probabilistic (probability) probabilistic - Relating to, or governed by, probability. The behaviour of a probabilistic system cannot be predicted exactly but the probability of certain behaviours is known. Such systems may be simulated using pseudorandom numbers. hurricane tracking service for trading the new CME CME See: Chicago Mercantile Exchange CME See Chicago Mercantile Exchange (CME). (NYSE NYSE See: New York Stock Exchange , NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CME) futures and options on futures contracts based on the Carvill Hurricane Index (CHI[TM]), in time for the 2007 Hurricane Season Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
With hCast-SR[TM] traders can monitor the projected value of their hurricane contracts as hurricanes develop, making it easier to make buy/sell decisions. AER scientists have developed techniques to process an ensemble of over fifty tropical cyclone tropical cyclone Severe atmospheric disturbance in tropical oceans. Tropical cyclones have very low atmospheric pressures in the calm, clear centre (the eye) of a circular structure of rain, cloud, and very high winds. track forecasts from all leading US and international hurricane modeling centers. Traders will have access to regional probability density plots of the CHI[TM] for all hurricanes that are predicted to approach within 100 nautical miles of the coastline. These regions, as defined by the CME Hurricane product specifications, include the Gulf Coast, Florida, the Southern Atlantic Coast, the Northern Atlantic coast and the Eastern US. "We are pleased to meet the needs of this growing market. Based on the increased risk of hurricane damages, we see CME's new futures and options contract to be a prominent instrument for mitigating risk," stated Dr. Thomas Nehrkorn, Director of Tropical Forecasting at AER. "As we enter this extended period of active hurricane activity, it is important for our capital markets to contain such risk. hCast-SR[TM] is an important tool for maximizing contract value, as well as, a natural extension to our existing forecast services for the financial markets." Atmospheric and Environmental Research, Inc. (www.aer.com), established in 1977 and headquartered in Lexington, Massachusetts, is an award winning environmental research and consulting company with demonstrated expertise in medium and long range forecasting for the Energy and Financial Markets. CME (www.cme.com) is the world's largest and most diverse derivatives exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex([R]) electronic trading platform and on its trading floors. CME offers futures and options on futures in these product areas: interest rates, stock indexes, foreign exchange, agricultural commodities, energy, and alternative investment products such as weather, real estate and economic derivatives. CME is a wholly-owned subsidiary of Chicago Mercantile Exchange Chicago Mercantile Exchange (CME) Chicago Mercantile Exchange (CME) is the largest futures exchange in the United States and the second largest exchange in the world for the trading of futures and options on futures. Holdings Inc. (NYSE, NASDAQ: CME), which is part of the Russell 1000[R] Index and the S&P 500[R] Index. hCast-SR is a registered trademark of Atmospheric and Environmental Research, Inc. CHI is a registered trademark of Carvill America, Inc.. |
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