Quick Overview of IFEX 

IFEX Event Linked Futures (ELFs) are binary futures contracts listed on the Chicago Climate Futures Exchange (CCFE).

  • ELF contracts provide for a payment if (but only if) industry wide losses from a specified natural catastrophe event reach a pre-specified loss level.
  • Event loss levels are based upon independent estimates by Property Claims Services (PCS).

An IFEX Event Linked Future is a derivative contract that replicates the economics of an Industry Loss Warranty.

  •  ELFs are not reinsurance contracts. Hence;
  • Protection Buyers do not have to demonstrate any actual incurred losses.
  • Protection Sellers do not have to be an authorised insurer or reinsurer.
  • ELFs have standardised terms and all contracts are listed on the CCFE.

             - enhancing price transparency

             - eliminating counterparty credit issues

             - allowing for unwinding OTC (Over The Counter) positions by 
               offsetting through on exchange ELF contracts


An ELF is a Contract for Difference and counterparty risk is minimised because all transactions are cleared and margined.

For a more detailed explanation of the terms above, please select from 'IFEX Basics'.

Getting Started with IFEX.

Please click on this link to learn how to Set up an Account.