Cantor Futures Exchange (CX Futures Exchange)
Contents
- Unveiling the CX Futures Exchange: An Overview
- Delving Into CX Markets: Trading Weather and More
- Tracing the Evolution: History of the CX Futures Exchange
- Exploring Weather Derivatives: Trading Beyond the CX Futures Exchange
- Where Can I Trade Weather Derivatives?
- What Are Water Futures?
- What Is the Purpose of Weather Derivatives?
Exploring the Cantor Futures Exchange (CX Futures Exchange): A Comprehensive Guide
Unveiling the CX Futures Exchange: An Overview
Formerly known as the Cantor Futures Exchange, the CX Futures Exchange operates as a regulated exchange under the supervision of the U.S. Commodity Futures Trading Commission (CFTC). Offering a variety of derivative instruments, including foreign exchange (Forex), tropical storms, and metals, CX Futures provides traders with real-money trading opportunities across diverse markets.
Delving Into CX Markets: Trading Weather and More
At the heart of the CX Futures Exchange lies CX Markets, where traders can engage in weather-based trading activities. From predicting tropical storm landfalls to forecasting snowfall amounts and temperatures, speculators and hedgers alike can participate in markets related to various weather conditions. Additionally, CX Markets facilitates trading in forex and gold binary options, offering fixed payouts and limited losses for traders.
Tracing the Evolution: History of the CX Futures Exchange
Initially conceived as an online marketplace for trading domestic box office receipt contracts (DBOR contracts), the Cantor Futures Exchange faced regulatory challenges and underwent transformations over the years. Originally resembling the Hollywood Stock Exchange (HSX), the exchange pivoted its focus after the Dodd-Frank Act banned DBOR futures, emerging as the CX Futures Exchange and diversifying its product offerings to include innovative financial instruments.
Exploring Weather Derivatives: Trading Beyond the CX Futures Exchange
While CX Markets caters to weather-related trading, other exchanges like the Chicago Mercantile Exchange (CME) offer weather futures and options for hedging against weather-related risks. Moreover, recent developments, such as the introduction of water futures by the CME Group, highlight the evolving landscape of derivative trading, aiming to address emerging market needs and risks.
Where Can I Trade Weather Derivatives?
Weather futures and options can be traded on the Chicago Mercantile Exchange (CME). The products are from 10 U.S. and European cities, including New York, Chicago, London, and Amsterdam. Heating degree days (HDD) and cooling degree days (CDD) are also available to trade.
What Are Water Futures?
The CME Group launched water futures in December 2020 in California, known as the Nasdaq Veles California Water Index. The goal was to create a derivative to hedge exposure to the price of water.
What Is the Purpose of Weather Derivatives?
Companies and individuals trade weather derivatives with the goal of hedging against the risk of weather-related losses. The entire world, and, therefore, every industry is impacted by the weather. Hurricanes, snowfall, and floods are all detrimental to the success of a business. Purchasing weather derivatives help temper any losses that businesses incur due to adverse weather events.