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Insiders forecast a sunny future for CME's new snowfall derivatives

Winter in Chicago means snow. And snow means sledding, shoveling, scraping and… binary option derivative contracts? In December, Chicago-based CME Group Inc., began listing an expanded class of weather contracts based on snowfall levels in five cities around the country. The idea is that a business directly affected by snowfall can use the market to transfer the risk of uncertainty in weather.

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Source: news.medill.northwestern.edu