The Nasdaq Veles California Water Index futures have officially joined other commodities on the Wall Street marketplace. CME Group launched the water futures Dec. 7 and the January 2021 contract had two trades.
“I’m delighted we’ve had trades,” Clay Landry, managing director at consulting firm WestWater Research, which provides the data used to calculate the water index, told Bloomberg. “In the physical market, it’s so hard to get a deal done. This feels like lightning fast to me.”
The index sets weekly benchmark spot price of water rights in California based on the five largest water markets in the state. Critics in agriculture have suggested the speculation of trading water might lead to higher actual prices.
