CCFE to List IFEX US Tropical Wind ‘Second Event’ ELFs (Event Linked Futures)

PRESS RELEASE

May 2 2008

CCFE to List IFEX US Tropical Wind ‘Second Event’ ELFs (Event Linked Futures)

IFEX is pleased to announce that the Chicago Climate Futures Exchange (‘CCFE’) will list IFEX ‘Second Event’ US Tropical Wind Event Linked Futures on May 2 2008

Currently the Chicago Climate Futures Exchange (CCFE) lists ‘First Event’ US Tropical Wind Event Linked Futures for the 2008 and 2009 loss periods for $10bn, $20bn, $30bn, $40bn and $50bn Loss Trigger Levels.  CCFE will now also list ‘Second Event‘ contracts for these Loss Trigger Levels and loss periods.

Event Structure of ELF Contracts

The Event structure of the ELF contracts is designed to follow the pattern of Industry Loss Warranty reinsurance policies. Thus a tropical storm or hurricane that causes insured losses of $10.1bn will trigger the First Event $10bn Loss Trigger Level. A second tropical storm or hurricane causing $20.1bn of insured losses in the same loss period (calendar year) will trigger the Second Event $10bn Loss Trigger Level and the First Event $20bn Loss Trigger Level.

Third Event Contracts

If a First Event Loss Trigger Level is reached by tropical storm or hurricane, the CCFE may list a Third Event series of $10bn, $20bn, $30bn, $40bn and $50bn Loss Trigger Levels.