Consulting and Auditing Services for Weather Derivative Traders 

Established in 1999, Speedwell Weather Derivatives (SWD) has the human, technological and data resources as well as the experience to be able to independently advise on a range of weather derivative valuation issues that may affect principals offering capacity to the weather market. We would be pleased to offer our services in the following areas:

  • Advising on the valuation of a weather derivative. We can provide a second opinion on values of the larger structures which can make a large impact on the success of your portfolio. We can comment on issues including data quality, data recalibration, detrending methods, sensitivity to triggers, climatology, long-term cycles and forecasts.
  • Presenting an independent opinion on the value of a portfolio of weather derivatives for the auditor of an investment fund acting as a weather derivative market maker.
  • Providing to your client, if required to satisfy internal sign-offs before a trade can be consummated, an independent opinion on fair value of a proposed hedge.
  • Settlement refereeing: both sides to a transaction are exposed to changes in a weather reference site during the lifetime of the hedge. In situations where site moves are experience, SWD can adjust the settlement value using pre-defined transparent methodologies to ensure that the contract settles on the conditions pertaining when the hedge was struck. This reduces basis risk for the hedger and reduces the risk premium for the provider.

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)703 535 8801

Alternativly you can use our Contact Us page.

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