CelsiusPro
Encyclopedia
CelsiusPro AG is a Swiss company specialized in structuring and originating OTC weather derivatives
Weather derivatives
Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk management strategy to reduce risk associated with adverse or unexpected weather conditions...

 worldwide. Using a proprietary platform, CelsiusPro enables online price calculation, execution and position reporting as well as weather statistics and analysis. It is predominantly active in the primary weather market offering corporate hedges to companies from weather dependent industries such as: energy, construction, agriculture, tourism and leisure, events and transportation. It is the winner of the 2009 Swiss Insurance Industry award for Innovation.

Weather Derivatives

The weather certificates, OTC
Over-the-counter (finance)
Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the exchange must be well standardised to transparent trading....

 weather derivative
Weather derivatives
Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk management strategy to reduce risk associated with adverse or unexpected weather conditions...

 contracts, are based on climatic indices for underlyings such as temperature, rain, snow, wind and radiation for weather stations across Europe, Australia, Canada and the US. The price calculations and settlements are based on measurements of official national weather station
Weather station
A weather station is a facility, either on land or sea, with instruments and equipment for observing atmospheric conditions to provide information for weather forecasts and to study the weather and climate. The measurements taken include temperature, barometric pressure, humidity, wind speed, wind...

s.

Partnerships

CelsiusPro has a strategic partnership with Swiss Re
Swiss Re
Swiss Reinsurance Company Ltd , generally known as Swiss Re, is a Swiss reinsurance company. It is the world’s second-largest reinsurer, after having acquired GE Insurance Solutions. The company has its headquarters in Zurich...

 for risk management and risk transfer since inception. CelsiusPro partners with a number of financial institutions to provide their clients with weather derivative pricing and execution services under a fully branded white label partnership solution and offers introducing broker
Commodity broker
A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial...

 partnerships. Among others, it is the main partner for weather risk management
Weather risk management
Weather risk management is a type of risk management done by organizations to address potential financial losses caused by unusual weather.-Overview:...

 solutions for the Dutch construction association Bouwend Nederland. CelsiusPro has also supported a research paper of the University of Sankt Gallen
University of St. Gallen
The University of St. Gallen is a public research university located in St. Gallen, Switzerland. It is specialized in the fields of business administration, economics, law, and international affairs. The University of St. Gallen is also known as HSG, which is an abbreviation of its former German...

 (CH) on weather risks in the energy sector.

Further reading

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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