CME Group Launching "First-of-its-Kind" Water Futures Product

Investors can buy and sell futures contracts for items like pork bellies and oil, so why not for water too? Securities exchange operator CME Group (NASDAQ: CME), which specializes in financial derivatives like futures, announced Thursday it has launched a water futures contract in conjunction with Nasdaq (NASDAQ: NDAQ). The contract will be based on the Nasdaq Veles California Water Index, which was introduced in 2018.

CME Group said in the press release trumpeting the Nasdaq Veles California Water Index futures contract that it "will be an innovative, first-of-its-kind tool to provide agricultural, commercial, and municipal water users with greater transparency, price discovery, and risk transfer – all of which can help to more efficiently align supply and demand of this vital resource."

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Source Fool.com