TFS Energy Hosts the First Weather Derivatives Trade and Dutch Auction for Rome, Italy
17 April 2008 -TFS Energy, LLC, a leading interdealer broker and a subsidiary of Compagnie Financière Tradition, today announced its US weather derivatives division completed the first Dutch auction for Rome, Italy, on behalf of a client who was looking to offset its risk. Offers were solicited for cumulative average temperature calls in Rome for the May-September 2008 time period. The auction had a total of $40 million in notional risk placed, and was oversubscribed in terms of the capacity that was available in the market. Formal proposals had to be submitted to TFS Energy by 10 a.m. (Eastern Daylight Time) on April 16, 2008.
"We are pleased to have successfully brokered the first auction and placed the first weather risk for Rome, Italy. Given the auction's oversubscription, this auction only confirms my belief that this product is moving well outside of the United States," commented Kendall Johnson, MD and Global Head of Weather Derivatives for TFS Energy.
TFS Energy has hosted numerous auctions ranging in magnitude from $1 million to upwards of $60 million of transferred risk. This auction comes after TFS Energy's first-ever Asian weather derivatives Dutch auction, as well as its largest-ever Dutch auction on behalf of UBS, where the notional value was in excess of $64 million. Its weather desks are located in Stamford, London, and Sydney.
Editor Notes on the Auction Style-Dutch Action
Offers were accepted in minimum of 250 lot increments and cleared on the CME. In the event there were multiple offers accepted, all offers were filled until a minimum of 1,000 lots had cleared. Offers were accepted on either of the structures but only one strike was traded to a maximum of 2,000 lots.
-Ends-
Inquiries
Kendall Johnson, MD and Global Head of Weather Derivatives
+1.203.967.0427
Jennifer Van Hofwegen, Head of Marketing and Communications +1.212.791.6491
About TFS
Founded in 1985, TFS is a market leader in the brokering of financial and non-financial products. With offices worldwide, the Company covers currency options, equity and property derivatives, freight, precious metals, energy and pulp & paper markets. TFS Energy brokers a full spectrum of OTC energy and energy-related physical and derivative products, including electricity, natural gas, crude oil and refined products, coal, environmental products, weather derivatives, and exchange-traded futures and options. In Environmental Finance's survey, readers voted TFS Energy in 14 categories, including 'Best Broker' in global weather derivatives. TFS Energy was awarded 'Broker of the Year-Asia' by Energy Risk in 2007. In the 2007 Energy Risk/Risk's Commodity Rankings, TFS won 15 1st places, including best broker in all weather categories. In Commodities Now's 2006 broker rankings, TFS Energy was awarded 'The Energy Broker of the Year' for the second successive year. In Energy Risk's 2006 commodity rankings, TFS Energy was ranked in 36 categories with nine No. 1 places. TFS is a subsidiary of Compagnie Financière Tradition (CFT), one of the world's top three interdealer brokers in financial and commodity-related products with a presence in 24 countries and 2,200 employees. CFT is listed on the Swiss Exchange (Symbol: CFT). For further information, please visit www.tfsenergy.com.