CCFE to List Third and Fourth Event Contracts for IFEX Event Linked Futures

Press Release
FOR IMMEDIATE RELEASE
Sept 19 2008

CCFE to List Third and Fourth Event Contracts for IFEX Event Linked Futures (‘ELFs’)

IFEX is pleased to announce that the Chicago Climate Futures Exchange (‘CCFE’) will list Third and Fourth Event contracts for all Event Linked Futures on September 19 2008

Currently the Chicago Climate Futures Exchange (CCFE) lists First and Second Event US, Florida and Gulf Coast Tropical Wind Event Linked Futures. Contracts are listed for the 2008 and 2009 loss periods for $10bn, $20bn, $30bn, $40bn and $50bn Loss Trigger Levels. From Friday September 19 2008 CCFE will list Third and Fourth Event contracts for all IFEX ELF listed products.

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.