New York’s Longitude, Inc., a leading provider of derivatives and risk management products, has concluded an agreement with Swiss Re “for the development of new weather risk management products” using the company’s “Parimutuel Digital Call Auction ™ (PDCA{tm}) technology.”
Longitude stated that its patented PDCA process “overcomes traditional market constraints to enable financial intermediaries to provide new derivatives and risk management products to their customers without assuming the market risks customarily associated with the facilitation of risk transfer.”
Swiss Re will incorporate Longitude’s technology in its calculations linked to weather derivatives, particularly in measuring temperatures and precipitation. The goal, according to Frank Caifa, associate director on Swiss Re’s weather trading desk, is to use the strategy provided by Longitude “to focus and leverage our risk capacity to create more overall liquidity in the global weather markets.”
Longitude’s CEO Andrew Lawrence said the company was extremely pleased to “have Swiss Re as a client,” and indicated that “their capabilities will ensure a range of extremely compelling product offerings and rapid market adoption.”|”longitude, work, with, swiss, re, on, weather, derivatives
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