Futures contracts to provide a price hedge for water users

摘要

Exchange operator CME Group has announced that it will launch financially settled futures contracts based on the Nasdaq Veles California Water Index (NQH2O) before the end of 2020. The NQH2O index, which was launched in October 2018 by Nasdaq and Veles Water using data collected by West-Water Research, sets a volume-weighted average weekly spot price for water rights transactions in five of the largest water trading markets in California (see GWI January 2019, P30).