On Wall Street in New York City for the first time futures for water supply were put up on the exchange.
It is noted that water supply contracts will be able to secure major consumers of one of the most valuable resources on Earth, as well as farmers and power companies. It is reported by Bloomberg.
Futures on water are linked to the Nasdaq Veles California Water Index, launched in 2018, which measures the weighted average price of water.
The contract for water supply in January 2021 came into force on Monday, December 7, consisted of two transactions.
Futures are calculated financially, physical delivery of water is not required. One contract includes 3.26 million gallons of water.
According to Tim McCourt, head of CME’s stock indexing and alternative investment products department, 2 billion people now live in countries where there is a problem with water, and in 4 years almost two-thirds of the world may face a shortage of this resource.
“The idea of managing water risks is certainly gaining in importance,” McCourt said.