CME Group is adding rainfall derivatives to its roster of weather-related derivative products.

The Chicago-based derivatives marketplace announced Thursday that it will begin listing and trading rainfall futures and options beginning on November 1.

The firm, which already offers products geared to temperature, snowfall, frost and hurricanes, says that the new futures and options will enable market participants to manage their exposure to rainfall, and financial risks associated with whether there is more or less rain than expected in a particular region.

The rainfall contract locations include Chicago O’Hare International Airport, Dallas-Fort Worth International Airport, Des Moines International Airport, Detroit Metro Airport, Jacksonville International Airport, Los Angeles Downtown USC Campus, New York LaGuardia Airport, Portland International Airport and Raleigh/Durham International Airport.

“We see the impact of weather every day in our lives and we know how it can influence regional and local business decisions – whether to raise prices, divert inventory or result in temporarily closures,” said Tim Andriesen, CME Group’s managing director of agricultural commodities and alternative investments. “A significant number of industries, from agribusiness to recreation, are reliant on good weather, but also are at the mercy of bad weather. Rainfall contracts, in conjunction with our existing suite of weather products, will allow these businesses to manage the resulting risk.”

IE