Should We Legislate or Ban Water Futures? A Closer Look.
About a year ago, I reported on a new water futures market on the Chicago Mercantile Exchange. The market is based on an index, which is based on the sales transactions of actual water in CA, including statewide and in 5 sub-basins in the Southern CA area. The index price is reset weekly, and that reset influences the prices of the water futures. No actual water changes hands; these futures contracts are settled only in dollars.