URL copied
Now farmers, hedge funds and municipalities will be able to bet on potential water scarcity.
With Chicago-based CME Group Inc all set to launch contracts linked to the $1.1 billion California spot water market, consumable water will now be traded on Wall Street. In a first, water is officially joining gold, oil and other commodities that are traded on Wall Street.
Now farmers, hedge funds and municipalities will be able to bet on potential water scarcity starting this week. It remains to be seen if this will enable water users to create a balance between supply and demand. An imbalance is the underlying cause of the scarcity. According to UN, water shortages could affect around five billion people worldwide by 2050.