Intercontinental Exchange, Inc. (NYSE: ICE), an international provider of data, tech, and market infrastructure, reveals that it has introduced its weather forecast data on its ICE Connect platform.
According to the announcement, ICE Connect users will be able to link streaming weather data to streaming tick information, which would make it easier for clients to review how changing weather forecasts affect live market prices.
Temperature, degree days, precipitation, visibility, wind, and solar radiation are some of the meteorological factors that can affect energy, agriculture, and various other weather-sensitive instruments.
As noted in the update, the ability to understand the overall impact of these forecast variables is important to traders, analysts, and meteorologists. ICE’s tech provides its clients with a solution that assists with organizing, quantifying, and digitizing large amounts of streaming weather and price data that’s converted into actionable insights.
Maurisa Baumann, Senior Director, Desktop Products at ICE, stated:
“Having access to a comprehensive collection of global weather data that is mapped to security-level information offers ICE customers a unique ability to make more informed decisions. Investors, traders and market participants are also focusing on the relationship between climate, weather and markets as they seek to manage risk and uncover opportunities. ICE’s weather solution provides another compelling resource for users to plot, analyze and understand the growing relationships between meteorological forces and their impact on price data.”
By bringing together streaming weather data with ICE’s pricing data, clients may interact with weather and price information, in order to understand and analyze the overall effect that streaming weather forecasts can have on energy, agriculture and various other weather-sensitive instrument prices.
Clients may visualize and quantify the location and intensity of weather events, which assists them with understanding price movements. Additionally, ICE is providing a weather data symbology that enables clients to access raw weather data in a daily or hourly format for improved statistical analysis of market data.
ICE’s weather platform makes use of data from global government weather forecast models, such as the Global Forecast System and the European Centre for Medium-Range Weather Forecasts, offering clients extensive model data.
The service offers higher spatial and temporal resolution than these sources, which provides customers with a more reliable and accurate version of these government weather forecast models. Additionally, it contains forecast and weather observations for global weather locations, such as daily and hourly intervals.
All weather forecasts get archived and weather observations go back 40 years for all forecast variables across locations.
ICE says that it’s focused on further developing appropriate tools that enable users to understand the role ESG considerations and various other factors might play in identifying market opportunities and assessing risk.
Recently, ICE introduced ICE Climate Risk, which applies geospatial climate, economic and demographic data to support analysis and comparisons between different municipalities and securities.
ICE Weather is currently accessible via ICE Connect.
