Evolution enters catastrophe derivative market

NEW YORK, Aug 12 (Reuters) - Energy and environmental markets brokerage Evolution Markets Inc said on Tuesday it has launched services to help traders manage the risks of weather events like hurricanes.

Evolution will broker catastrophe derivative trades in the over-the-counter market and on exchanges, such as the Chicago Mercantile Exchange and New York Mercantile Exchange, for insurance and reinsurance companies, banks, and hedge funds.

Catastrophe bonds allow investors to make bets on weather disasters and last year issuance hit a record above $7 billion, This year, that number is expected to be about the same.

Jeremy Crowch, who has been hired to lead the effort, said Evolution would broker catastrophe derivative swaps and secondary catastrophe bonds among other things. (Reporting by Timothy Gardner; Editing by Walter Bagley)