Back in some days SEBI super concerned about retailers loosing in options, just to prevent them so much buzz were there.
Now they sliding weather derivatives & everyone is quiet.
As a legend said:
“Hypocrisy ki bhi Sima hoti hai”
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If the outcome cannot be manipulated by artificial demand or supply then retailers will have a far better chance of being profitable on weather options trade. Interesting.
Typo here: It is losing and not loosing.
let me be that person, who pointed this out to you, so you remember me the next time you correct yourself on this.
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They can though. If the derivative market is big enough, things like cloud seeding can be attempted to force a preferred outcome for the whales, but greasing the hands of few meteorological survey agents would be much easier.
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Noted.
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Sharks will now manipulate weather 
Saw a bunch of questions around this on twitter, so had put this out.
NCDEX is launching weather derivatives for Mumbai rains. Isn’t this gambling? Is this a slippery slope? What gets traded next if even rainfall does?
It’s a fair instinct, but the contract isn’t arbitrary. Weather has been informally hedged in India for years, but this version draws its validity from the Securities Contracts (Regulation) Act, 1956.
Commodity derivatives used to sit under the Forward Contracts (Regulation) Act. In 2015, FCRA was repealed, and commodity derivatives were merged into SCRA under SEBI. The definition of what can be traded is a finite list, with two buckets: (1) goods, and (2) activities, services, rights, interests and events.
Under (2), there are only two notified items today: weather and freight.
So no, this isn’t a slippery slope. Whether it should have been opened at all is a separate question.
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The data provided will be by the govt. How will they ensure that something like this doesn’t happen in India?
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He was correct , I distinctly remember my trouser becoming loose trading finnifty .
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Instead of being the exception it’ll be a norm here.
Hedge funds literally use satellites to study economy.
if you think you can predict weather better than jane street, you are an idiot.