Who Trades Economic and Event Contracts?

Economic and event contracts are traded by a diverse mix of participants. Each product fills a specific niche targeted for a particular user and/or need. Some of these contracts are ideal for smaller, individual traders, while others, for large institutions.
CME weather derivatives might be attractive for a business whose revenue is tied to the weather, such as a ski resort.
Businesses whose profits or losses are related to any area of the housing industry may trade S&P/ Case-Shiller Home Price index futures, including property and real estate developers, mortgage lenders and home suppliers, as well as businesses seeking exposure to an uncorrelated asset class, such as hedge funds or foreign investors.

Policy makers and economists focus on the monthly BLS nonfarm payroll number as a way to determine the state of the economy and predict future economic activity. In turn, the market looks for clues in the data of how policy makers, specifically the Federal Open
Markets Committee, will respond to the current state of the economy. Due to the importance of this number, the value of interest rate, equity and currency markets may all be impacted accordingly, and participants in all of these markets may find nonfarm payroll futures of interest.