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Menlo Park, CA - November 3, 2000 - Risk Management
Solutions (RMS) today announced that Enron North America has
licensed Climetrix®, RMS' market-leading weather derivatives trading
and risk management platform. Enron will use the Climetrix
application and its embedded cleaned and enhanced weather data to
support its weather trading activities.
Launched in July 2000, Climetrix is an Internet-based application
that provides weather derivative traders and end-users with a
comprehensive set of data and analytical functionality for pricing
weather derivatives and managing portfolio risk. Key features of the
system include:
- A database of cleaned and enhanced historical weather data
for 200 U.S. weather
stations, developed and maintained by RMS' strategic partner
Earth Satellite Corporation. This data has been extensively
treated to correct for historical events such as changes in
weather station location or instrumentation that can affect the
reliability of historical data.
- Advanced meteorological and statistical modeling of trends
and other factors that influence weather derivative valuation.
- Real-time feeds of weather data and forecasts to allow
traders and risk managers to track the day-by-day
evolution of weather derivative positions.
Under Enron's licensing contract, 17 weather traders and
quantitative analysts in Enron's Houston and London offices will
have access to the Climetrix application. "We have observed a
substantial increase in the acceptance and use of weather
derivatives among corporate end-users this winter season, and we
foresee continued strong growth in the market," said Mark Tawney,
head of Enron's weather desk.
Paul VanderMarck, Managing Director of RMS' weather risk business,
commented, "Enron is one of the most active and sophisticated
participants in the market, and we are pleased to have them join our
growing client base. Our Climetrix product makes it possible for new
entrants to the weather risk market to rapidly acquire the same data
and modeling tools that are used by experienced traders."
The Climetrix application can be accessed at www.climetrix.com.
About RMS
Risk Management Solutions is the world's leading provider of
products and services for catastrophe, weather, and enterprise risk
management. More than 400 leading insurers, reinsurers, trading
companies, and other financial institutions rely on RMS models to
quantify, manage, and transfer risk. Founded at Stanford University
in 1988, RMS serves clients today from offices in the U.S., Europe,
and Japan. For more information, visit our web site at
www.rms.com.
Climetrix, RMS, and the RMS
logo are trademarks of Risk Management Solutions, Inc. All other
trademarks are property of their respective
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