SWS is the pre-eminent enterprise weather derivative pricing and risk management
system comprising front office pricing tools, middle office risk management tools
and back office
SWS consists of many millions of lines of code representing over a decade of continuous
development. SWS provides a consistent and reliable framework for valuing weather
hedges, for managing a portfolio of weather risk and for the process flow of seeing
those transactions through to settlement. We have a philosophy of transparency (no
black boxes, full documentation of methods), openness (all SWS outputs are easily
exportable, all components re-usable in 3rd party systems, subject to licence) and
we understand the importance of auditability and resilience.
SWS is a client-server application comprising:
SWS can be installed internally or can be hosted by us with each client having
a dedicated database.
SWS supports pricing based on numerical integration techniques as well as actuarial
burn. Daily rainfall and temperature simulation engines are also available. SWS
supports the highly complex and trades that are a feature of the OTC weather risk
market with a highly flexible tool that allows the user to generate compound indexes.
Compound indexes can comprise any number of weather variables, with any weights
and with an unlimited level of complexity (including even compounds on compounds
on compounds etc..)
SWS users can declare an unlimited number of pricing models combining different
detrending methods, weather data hierarchies, distributions, leap year adjustments
etc. All calculations available within SWS are available as a library for use in
other applications. SWS handles an unlimited number of weather risk portfolios.
Credit risk, expiry VaR and daily VaR calculations are supported. Delivery and running
of reports can be automatically scheduled.
SWS is an open system:
All data grids can be exported to a spreadsheet.
All SWS components can be used in external applications.
Weather data is easy to import and export.
SWS continues to evolve: in over a decade of development we have
made available six major releases and numerous minor releases to our clients. Version
8.0, released in April 2012 is the culmination of a major re-write of its code as
we move to the MS .NET framework.
Build Vs Buy Considerations
We believe SWS is a compelling alternative to the apparent attractions of developing
a system in-house. If you are considering internal development and your weather
system has not/will not accommodate these considerations, then SWS may be an expedient
SWSConnect is the web version of SWS combining pricing tools, integrated
weather data, CME closing price information and, optionally, integrated forecasts
and Recalibrated Data.
Regarding Speedwell Weather Systems please contact: