Feeds

Storm clouds have silver lining for portal site

Met Office invests in unpredictable weather market

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

The Met Office, Britain's government run weather forecasting agency, is investing £500,000 in an e-commerce firm which aims to create a market for trades based on the weather.

Weatherxchange.com, a joint venture between the Met Office and technology partner Umbrella Brokers, will provide information about the weather from European and UK weather centres to traders specialising in weather derivatives.

Unlike conventional weather insurance (which only cover one-off events), weather derivatives are more complex financial instruments which allow firms to receive payments if, for example, there was a sustained cold spell.

By using these instruments organisations like power generators and leisure firms can limit their exposure to weather conditions that might have an adverse effect on their businesses.

The market for weather derivatives is worth around $9bn worldwide but is immature in Europe compared with the US - which is slightly surprising given the well known fixation of the British with our unpredictable weather.

By creating a portal with a comprehensive set of European weather data, the Met Office hopes to stimulate the development of a market for weather derivatives and allow contract settlement times to come down from 80 to five days. ®

External Link

Weatherxchange.com

Related Stories

Lloyds of London (twice), Met Office follow Railtrack UK in hack attack
BT dreams of long hot summer

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.