Trading ‘Live’ and ‘Dead’ CAT

 

The significant increase in the $10bn price was the result of Hurricane Ike which was ultimately settled above the $10bn, but below the $20bn LTL.

• IFEX ELF contracts will allow active trading in ‘live’ and ‘dead’ CAT.
  
  
• It is possible to trade the contracts as hurricanes develop and approach the covered territories – ‘live CAT’.
  
  
• It is also possible to trade ‘dead CAT’ -  once hurricanes have made landfall and it is unclear what the loss estimate will be and whether the chosen loss trigger level has been exceeded.