I F E X

Event Linked Futures

“… London, the centre of the international insurance industry, is collaborating with Chicago, the world centre of exchange traded derivatives…” 

In September 2007 IFEX (Insurance Futures Exchange Services Ltd) launched a market in exchanged traded, cleared and margined insurance based derivatives in collaboration with Deutsche Bank. Its first products were  Event Linked Futures (ELFs) for US Tropical  Wind. Contracts are for the calendar years 2008 and 2009 risk periods. ELFs are modelled on Indusry Loss Warranty reinsurance policies, but are contracts for difference, rather than reinsurance policies.  Initially only 'First Event' contracts  were listed and Second Event contracts were introduced on May 2 2008. On July 11 2008 IFEX listed First and Second Event Tropical Wind ELF contracts for Florida and for the US Gulf Coast (the states of Alabama, Mississippi, Louisiana and Texas). Contracts for other catastrophe zones and perils are planned. Third and Fourth Event Contracts were listed for all contracts on September 19 2008.

The trading platform is provided by the Chicago Climate Futures Exchange (CCFE), a Commodity Futures Trading Commission (CFTC) designated contract market.

IFEX is part of the Climate Exchange Plc group. Sister companies of IFEX include the European Climate Exchange (ECX) and the Chicago Climate Exchange (CCX). CCFE is a subsidiary of CCX.