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Via Tech Crunch, Weather Bill is now open for business. This is their ABOUT page:
WeatherBill sells Weather Contracts to eligible buyers. Weather Contracts can be used to protect your business from adverse weather conditions, by paying you when those adverse conditions occur. Some eligible buyers may also use WeatherBill to make speculative bets on the weather. Weather Contracts are financial instruments, which fall under the regulation of the Commodities and Futures Trading Commission. They are completely legal to buy, as long as you are an eligible buyer. […]
In order to purchase a Weather Contract from Weatherbill, you must meet eligibility requirements. These requirements are set by the Commodity Exchange Act. You can try to Sign Up for an account, to determine if you are eligible.
Weather Bill FAQ &- Answers:
What are WeatherBill contracts?
WeatherBill contracts are financial instruments that can be used by business managers and owners to protect against adverse weather. Adverse weather can be as simple as a rainy day or as destructive as a 6-month drought. If you know what weather conditions may impact your business, you can create a Contract that will pay you when the conditions occur, thus “-hedging”- your risk. Hedging your weather risk helps decrease the volatility of your business’-s profits. There is no minimum contract amount – you can buy protection for as little as $1.
Why would I want to buy a WeatherBill contract?
Every year, 70% of US businesses are impacted by the weather. Heat waves, hurricanes – even just abnormally warm winters or wet springs can impact the operations of all types of business. Ski resorts suffer during a warm winter and amusement parks lose visitors on rainy days. Sound planning means putting together a solid business interruption strategy. Weather Contracts can help guard against some of the unpredictabilities of weather. Use the WeatherBill Tools to learn more about how your business may impacted by the weather.
Are WeatherBill contracts the same as weather insurance?
No. WeatherBill contracts are financial instruments, regulated by the Commodity Futures Trading Commission. Weather Contracts do not require an insurance agent, a claims process, or a proof of loss to qualify for payment. Weather Contracts require payment based solely on weather measurements. WeatherBill automates this “-settlement”- and you will usually get a check in the mail within a few business days after a Contract has been settled.
Who are eligible buyers of WeatherBill contracts? How do I know if I’-m eligible?
Buyers of WeatherBill contracts range from retail store owners to traders to state governments. In order to create an account, you must be a US-based corporation, individual, or entity, and you must meet the criteria of an “-Eligible Contract Participant”-, as defined here [*].
Why do you need my Social Security number?
WeatherBill is required by US federal law to collect the Social Security Number (SSN) / Taxpayer Identification Number (TIN) of every customer. This is done to maintain an exact record that identifies all parties that buy our Weather Contracts, which are regulated contracts. These identifiers are transmitted and stored securely, and will not be used or disclosed by us for any purpose other than as required by law.
Is my personal information safe with WeatherBill?
Yes. We keep all information encrypted and secure, and will never share or sell it to anyone except as required by law.
Is this gambling? Is WeatherBill legal?
This is not gambling. If you are an eligible buyer, you are entering into a legal and binding Contract with WeatherBill when you purchase a Weather Contract. WeatherBill contracts are intended to be used as risk-management instruments that can help buyers manage financial risk tied to the weather. Weather Contracts are commodity contracts regulated by the Commodity Futures Trading Commission. They can be traded over-the-counter (i.e. not on a public exchange or marketplace), so long as both parties entering into the trade are eligible to trade. To find out if you’-re eligible, please read the definition of “-Eligible Contract Participants”- here, or try to register for a WeatherBill account.
WeatherBill using settlement data supplied from EarthSat, an independent provider of weather data.
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[*] Eligibility requirements for a WeatherBill account:
1. You must be acting for your own account.
2. You must be a US-based corporation, individual, or entity.
3. You must meet the definition of “-Eligible Contract Participant”-. We have made it rather simple for you to determine if you qualify as an ECP – you may try to register for an account and you will be asked several questions that will automatically determine your eligibility.
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Addendum: Jason Ruspini sends me this CFTC’-s EBoT page. No idea whether the “-Weather Board of Trade”- that is listed on that CFTC page is the parent company of Weather Bill.
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Previous Blog Posts:
– Comments on Weather Bill dot com – REDUX
– Comments on Weather Bill dot com
– Thoughts on Weather Bill – professor by Eric Zitzewitz – (Written before the opening of Weather Bill)
Previous blog posts by Chris F. Masse:
- A second look at HedgeStreet’s comment to the CFTC about “event markets”
- Since YooPick opened their door, Midas Oracle has been getting, daily, 2 or 3 dozens referrals from FaceBook.
- US presidential hopeful John McCain hates the Midas Oracle bloggers.
- If you have tried to contact Chris Masse thru the Midas Oracle Contact Form, I’m terribly sorry to inform you that your message was not delivered to the recipient.
- THE CFTC’s SECRET AGENDA —UNVEILED.
- “Over a ten-year period commencing on January 1, 2008, and ending on December 31, 2017, the S & P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs and expenses.”
- Meet professor Thomas W. Malone (on the right), from the MIT’s Center for Collective Intelligence.