The Helsinki securities and derivatives exchange (HEX) is preparing to launch exchange-traded weather derivatives by the end of the third quarter.

Jyrki Kiviniemi, HEX project manager for weather derivatives, says the exchange’s weather risk contracts will take a similar form to those offered by the London International Financial Futures and Options Exchange (Liffe) – presently the only exchange-traded market-place for weather derivatives in Europe.

HEX will initially offer monthly contracts based