As an LMM, Wolverine will post continuous bids and offers each day in CME's weather contracts, minimally from 8:30 a.m. until 4:00 p.m., in order to help ensure the liquidity of the contracts. Subject to the rules and parameters of the GLOBEX® matching algorithm, LMMs will receive a minimum percentage of incoming orders if the LMM is at the best bid or offer. Regular trading hours for weather futures and options on CME's GLOBEX® electronic trading platform are from 3:45 p.m. (5:30 p.m. on Sundays) until 3:15 p.m. the following business day.
CME lists heating degree day (HDD) and cooling degree day (CDD) futures and options on futures on 10 cities in the United States. The products, launched in September 1999, were the first exchange-traded, temperature-related weather derivatives. Weather derivative contracts are designed to help businesses protect their revenues during times of depressed demand or excessive costs because of unexpected or unfavorable weather conditions. The 10 cities currently listed for trading are Atlanta, Chicago, Cincinnati, New York, Dallas, Philadelphia, Portland, Tucson, Des Moines and Las Vegas.
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States and the second largest exchange in the world for the trading of futures and options on futures. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX around-the-clock electronic trading platform. CME offers futures contracts and options on futures primarily in four product areas: interest rates, stock indices, foreign exchange and commodities. The exchange moves about $1.6 billion per day in settlement payments and manages $27.4 billion in collateral deposits. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc.
Wolverine Trading, L.P., a proprietary trading firm established in 1994, has evolved into one of the largest global trading firms. Wolverine Trading supports in-person floor operations, electronic trading and off-floor risk management operations on the AMEX, CBOE, CBOT, CHX, CME, Eurex, ISE, NYSE, PCX, PHLX and XETRA. The firm participates as Market Maker, CMM, Specialist, LMM and DPM providing depth and liquidity to equity options, index options, futures and Exchange Traded Funds (ETFs). For more information about Wolverine Trading L.P., visit www.wolve.com.
