Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (8750)	2/15/2001 12:18:54 AM
From: LPS5	Read Replies (1) \| Respond to of 12617

I met with someone a few months back who explained to me that, for the retail end of the market, weather contracts could be used to hedge against the risk of financial loss to holders of an outdoor wedding - for example - in the event of rain (which might lead to losing deposits, damage to rented tuxes, etc). Or, for those in those "big square states" out west, losses due to tornados and such could be hedged against...to some extent. I wonder what the insurance/reinsurance industries will do to address the potent threat that such contracts present (if indeed they prove threatening). Possibly issue their own contracts or address the new market with OTC weather derivatives along the lines of swaps, etc.? LPS5

To: Jon Tara who wrote (8750)	2/15/2001 8:44:29 AM
From: TFF	Read Replies (1) \| Respond to of 12617

Futures have amazingly low performance bond rates. But more importantly the quick pace of change is making futures far more attract than stocks for short term trading. Some things happening include: Demutualization of futures exchanges creation of electronic markets (globex, a/c/e, etc) Proliferation of direct access platforms(ISVs') Simplified execution. High volume/highly volatile contracts. rapidly falling commission rates creation of many new contracts such as individual stocks, stock sectors, indices, etc. Should make for interesting times ahead.