Consulting and Auditing Services for Weather Derivative Traders
About Speedwell Consultancy Services
Speedwell Weather Derivatives, which is authorised and regulated by the UK Financial Services Authority, is pleased to offer services in the following areas in which we have helped clients since 1999:
- We can provide an independent opinion on the valuation of a weather risk structure. We can also comment on issues including data quality, data recalibration, detrending methods, sensitivity to triggers, climatology, and forecasts.
- We can present an independent opinion on the value of a portfolio of weather risk contracts.
- We can provide an independent opinion on the "fair value" of a proposed weather risk hedge.
These other services are also relevant to weather risk management:
- We can provide a settlement service for a weather risk contract. This involves providing a feed of quality controlled data ensuring the integrity and timely availability of the data to settle a financial transaction. Speedwell has been the official settlement data provider for hundreds of over-the-counter weather transactions and is the official data provider to the CME for its listed Australian weather risk contracts.
- We can act as a Settlement Referee: both sides of a weather transaction are exposed to possible changes in a weather reference site during the lifetime of the hedge. Site moves or instrument changes may occur. Speedwell can adjust the settlement data feed using pre-defined and transparent methodologies to ensure that the contract settles on the conditions that applied when the hedge was struck. This reduces basis risk for the hedger and may therefore reduce the risk premium for the hedge provider.
- We are able to install weather stations as a back up to existing sites. This can increase the reliability and integrity of settlement data and may therefore have a significant impact on the cost of weather protection.
For information related to our services in placing weather risk please Weather Risk Placement section
| Stephen Doherty (UK) || UK Office || +44 (0)1582 465 569|
| or David Whitehead (U.S.)||U.S. Office || +1 (0)843 737 4843|
Speedwell Weather Derivatives Limited is authorised and regulated by the financial regulator in the United Kingdom, the Financial Services Authority.