TP ICAP and Speedwell Launch First ICAP-Speedwell Climate Index

TP ICAP, a leading provider of market infrastructure and data solutions, announced that it has partnered with Speedwell, the environmental risk-management solution provider, to launch the first ICAP-Speedwell Climate Index.

Developed and maintained by Speedwell, the Index takes a representation of the average global temperature based on data taken from 50 independent, high-quality national weather stations from around the world.

The index is designed to use global weather data to track climate change thereby allowing financial risk related to the rate of climate change to be traded. It provides the underlying data necessary for market participants to transact, tailored structures relating to climate change using over-the-counter futures and options.

“The introduction of the Index has the ability to dramatically change how people calculate the financial impact of global climate change, providing comprehensive data to quantify the impact of future temperature changes for the first time,”Nicholas Ernst, Managing Director, Weather Markets, TP ICAP said.

“Speedwell has been involved in providing services to the environmental risk-transfer markets for over 20 years and so is delighted to now offer with TP ICAP a world-wide index that quantifies the direct impact of climate change on global temperatures,”David Whitehead, Co-CEO, Speedwell Weather, said.

Last month, TP ICAP has posted its financials for the first six months​​ ended 30 June 2021, showing a decline in its revenue and profits.