U.S. Futures Exchange (USFE) will begin listing Wind Power futures – its first renewable energy contracts – on Aug. 24. Seven contracts derived from NORDIX Financial Wind Indexes will trade with monthly expiries, and the futures will be valued at $500 per index point, with a tick size of $5.
NORDIX Financial Wind Indexes, created by Weather Bid LLC, are composed of deviations from 20-year historical wind speed averages compared with present daily figures. USFE's futures contracts are based on two wind regions in New York and five wind regions in Texas, as defined by the National Oceanic and Atmospheric Administration's (NOAA) National Center for Environmental Prediction division.
USFE also says it plans to develop a suite of futures contracts to include hydro, solar, geothermal and biomass energy resources.
