Weather auctions

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Stamford-based Tradition Financial Services LLC (TFS), is the largest broker of weather derivatives in the world. This year, TFS completed an auction on behalf of UBS[1] looking to hedge its risk. The deal totaled in excess of $60 million and ended up being oversubscribed because of the high amount of interest in the transaction.

TFS also brokered the first-ever weather derivatives auction for a company in Rome[2]totaling $40 million. Other auctions included an auction for the agricultural industry [3] and the first auction for Asia.[4] These weather auctions traded over $160 million in notional value.