Nasdaq Veles California Water
Index futures

A clear solution to water price risk management.
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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)

More on the Nasdaq Veles California Water Index

Access VelesWater's Weekly Water Report

Access VelesWater's Weekly NQH2O Report Archive

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.

    View full contract specs

    Contract resources

    FAQ

    Get answers to frequently asked questions about NQH2O futures, including product details and trading hours.

    Fact card

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    FCMs, block intermediaries, and liquidity providers

    Get a list of futures commission merchants and firms that can be contacts for those interested in executing block trades or who need an intermediary to trade.

    How to get started with NQH2O futures

    Download our ten-step guide to begin trading NQH2O futures.

    Guide: Understanding the Water futures market

    Download an in-depth primer on California's water market, hedging price risk with NQH2O futures, and the logistics of trading the contract.

    Hedging with water futures

    Learn how to start hedging water price risk with NQH2O futures

    Webinars

    Webinar: Diving into NQH2O futures

    Watch an exclusive webinar with product experts from CME Group, Nasdaq, and WestWater Research to learn about challenges in today's water market, NQH2O Index methodology, and NQH2O futures contract details.

    Webinar: Navigating California’s water market

    Hear from a panel of industry experts as they discuss hydrological and weather conditions in California as well as how each is impacting prices in the spot water market.

    Articles and customer stories

    OpenMarkets: California's Complex Water Market Faces New Challenges

    Read about California's intricate system of water management and the relationship of the supply and demand of water.

    OpenMarkets: California’s water risk finds a new market

    Read about the complexity of California’s $1.1B water market and a new tool that aims to address water price risk.

    CME Direct

    CME Direct users: Download the NQH2O futures trading grids:

    1. Right click on the buttons below
    2. Save the files as an .XML on your computer
    3. In CME Direct, select import view in the main menu
    4. Import the grid into CME Direct

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