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Wall Street bets on anything, even big weather events

Trading hurricane risk

When it comes to trading weather events, the CEO of investment bank Cantor Fitzgerald said Friday he wants a "natural market environment" that benefits both speculators and traders looking to supplement their insurance alike.

Shawn Matthews said his firm is creating a "building environment" for those looking to make money off a product like the weather.

In June, Cantor Fitzgerald set up, a website that allows traders to estimate and trade on where a given storm will hit land. If their guess is within 75 miles of landfall, their contract pays off. In light of Hurricane Matthew, the website has seen a record number of contracts.

"Looking at it from an insurance standpoint, if you get hit [by adverse weather], you want to have the ability to have more dollars come in quickly, and from the other side, if you're coming in [as a speculator], you know what your risk is going to be, so we think it's a natural market environment that we're creating," Matthews told CNBC's "Fast Money Halftime Report."

The CEO said he sees this product as "another form of insurance policy" for those in need of additional protection.