S&P launches futures outside U.S. only index - World Commodity index

By Marisa Wong

Milwaukee, May 5 - Standard & Poor's launched the S&P World Commodity index on Wednesday, according to a company news release.

The company said the S&P World Commodity is the first index to consist solely of listed commodity futures contracts that trade outside of the United States.

The S&P World Commodity includes 22 commodities covering the agriculture, energy and metals sectors listed on eight international exchanges and traded in six currencies in Asia, Europe and North America.

S&P said that this new rules-based, world-production-weighted commodity index is a natural extension of the S&P GSCI. However, the S&P GSCI is comprised of only dollar-based commodities, while the S&P World Commodity is multi-currency.

While the underlying futures contracts prices are traded in local currencies, these local currencies will be converted to dollars for calculating the S&P World Commodity.

There is no limit on the number of contracts that may be included in the S&P World Commodity as long as they satisfy eligibility criteria.

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