CME weather trading volumes already past those of 2004

Weather derivatives trading volumes for 2005 on the Chicago Mercantile Exchange have already surpassed last year's volumes, said the exchange yesterday. The number of contracts traded this year hit 124,177 on April 12, compared with 122,987 for the whole of 2004.

One reason for this growth is increased activity from new entrants such as hedge funds getting into the weather and related commodity markets, said Brian O'Hearne, president of GuaranteedWeather, a Kansas-based weather risk management firm.

In addition, CME established a single-day trading record on Monday, April 11 of 4,850 contracts, exceeding the previous record of 4,500 set on April 5, 2005. Average daily volume of CME weather contracts traded this year is 1,800 compared with an average

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