Weather Futures and Options - organized market versus “over-the- counter” market. MCX Rainfall Indices - RAINDEX. The indices records rainfall at (1) Mumbai (Colaba) & (2) Indore
Exchange: provides reference contracts which attract a large user base, from hedgers and speculators; these contracts will form part of the risk management instruments available to OTC providers.
OTC market: provide tailored products to those who are exposed to specific risks; and provide services in terms of aggregating demand.
OTC market can also use the exchange clearing house to help it with credit risk management.
Corporates exposed to specific risks
Credit risk mitigation
F a r m e r s