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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.
Financial
Services Authority