Via: Trader News Sell side needs to develop tools now if one has to exploit arb!

Looks like there is a tremendous opportunity for building sell side tools!

Via EMII: A new over-the-counter option has been launched that allows users to hedge against hurricanes making landfall in specific U.S. Atlantic and Gulf coast regions. Weather Risk Solutions’ Hurricane Risk Landfall Options or HuRLOs is be sold via Chicago Mercantile Exchange brokers. Rather than using direct counterparties, the options are cleared via the CME’s Clearing360 platform, which clears over-the-counter transactions. So far, users include reinsurance companies, insurance companies and power companies.

This is a book which is guaranteed to make you laugh!!! Yes , it is a book on derivatives but it is written in a great humorous style that it WILL MAKE YOU LAUGH. I bet! I picked up this book almost 10 months back. Speed read it . Had lent it to one of my friends and hence could not write a summary in time. Now that this book is back with me, Let me try to summarize a couple of interesting things from the book.