Nasdaq Veles California Water
Index futures

A clear solution to water price risk management.
Coming Q4 2020

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A new derivative solution to hedge water price exposure

The Nasdaq Veles California Water Index futures can help you manage the price risk associated with the scarcity of water in the largest water market in the US.

Key Benefits

First of its kind

The first regulated, exchanged-traded risk management tool to manage water supply and demand risk.

Leading benchmark

Based on the NQH2O Index, the leading benchmark tracking the price of water at its source, with data backed by market leader, WestWater Research.

Flexible access

Small contract size allows for easy access to manage water price exposure. Trade on-screen five days a week or negotiate bilateral block trades anytime.

Price discovery

Robust, transparent markets foster true price discovery for participants.

About the NQH20 Index: Reflecting water prices

The Nasdaq Veles California Water Index (ticker symbol: NQH2O) tracks the price of water rights leases and sales transactions across the five largest and most actively traded regions in California. Water entitlement transactions from the surface water market and four adjudicated groundwater basins ‒the Central Basin, the Chino Basin, the Main San Gabriel Basin, and the Mojave Basin Alto Subarea are included in the index. The value of the index reflects the volume-weighted average price of water, at the source, excluding conveyance costs and water losses in the underlying markets after adjusting for idiosyncratic pricing factors specific to each of the eligible markets and transaction types. NQH20 is valued in US dollars per acre foot (the volume of water required to cover one acre of land (43,560 square feet) to a depth of one foot, equivalent to 325,851 gallons)

Learn about Nasdaq Veles California Water Index futures

Find out more about NQH2O futures and the underlying index.

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Contract Specifications

CONTRACT NAME Nasdaq Veles California Water Index futures
PRODUCT CODE H2O
CONTRACT UNIT 10 acre feet x NQH2O Index
PRICE QUOTATION US dollars per acre foot
CONTRACT MONTHS  Eight consecutive quarterly contracts (Mar, Jun, Sept Dec) plus nearest two serial months
MINIMUM PRICE FLUCTUATION Outrights: $1.00 per acre foot equal to $10.00 per contract
Calendar spreads: $0.25 per acre foot equal to $2.50 per contract 
TRADING HOURs AND VENUE Globex: Sunday - Friday 5:00 p.m. - 4:00 p.m. CT with a 60-minute break each day beginning at 4:00 p.m.
ClearPort: Sunday 5:00 p.m. - Friday 5:45 p.m. CT with a 15-minute maintenance window Monday - Thursday from 5:45 p.m. to 6:00 p.m. CT
SETTLEMENT METHOD Financially settled
BLOCK TRADE MINIMUM THRESHOLD 25 contracts
LAST TRADING DAY Business day prior to Final Settlement Day
FINAL SETTLEMENT DAY Third Wednesday of the contract month if a CME business day, otherwise the next business day
FINAL SETTLEMENT PRICE Closing NQH2O price on Final Settlement Day rounded to the nearest $0.01.

Subject to regulatory approval

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FAQ

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Nasdaq Veles California Water Index

Visit Nasdaq.com to learn more about the Nasdaq Veles California Water Index.

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