It is a world first. The Wall Street American Stock Exchange has just displayed water as a stock market liquidity, in a global context marked by climate change and where the idea of managing the risks associated with water takes on increased importance.
“Farmers, hedge funds and municipalities are now able to protect themselves against-or to bet on-the future availability of water in California, the largest American agricultural market and the fifth world economy”, we read on the Bloomberg site.
In this regard, Wall Street’s scholarship holders, the largest scholarship in the world, more specifically, the Chicago Mercantil Exchange and the NASDAQ have launched contracts on Californian water, which is a great first for this natural resource which thus joins gold, oil or wheat.
The January 2021 CME Group Inc contract, linked to the cash market of $ 1.1 billion in California, was negotiated for the last time at 496 index points, $ 496 the acre, we learned from the same source. The financiers believe that they may well take advantage of this drying source.
Contracts, a first of its kind in the United States, were announced in September while the heat and forest fires ravaged the west coast of the United States and California came out of an eight-year drought.
