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HAUPPAUGE, NY--R.J. Rudden Associates, Inc. (Rudden) announced that its research led it to conclude that utilization of financial weather risk management instruments in the U.S. energy and public utility sectors are at an all time high. "Our research demonstrates that despite a broad scale collapse of the energy merchant sector that led in the development of weather-related risk hedging financial instruments in the United States, the demand for the products has increased. We are happy to report that the strength and liquidity of weather-related instruments is very strong," states Donald L. Sytsma, a co-author of the study and a Rudden vice president located in Houston.
The study states that recent multi-year trends towards warmer than "normal" weather have increased awareness to "volumetric risk," and ...