Thursday, November 09, 2006

Deutsche Borse launches commodity index

Deutsche Borse has launched their CX Commodity Index in a bid to compete with the leading commodity indices, Goldman Sachs' GSCI and the Dow Jones AIG index.

There is, however, one key difference between Deutsche Borse's CX index and others, according to Chris Flood's report in Thursday's Financial Times:

What differentiates Deutsche Börse's approach is that its CX index is based on trading liquidity rather than a weighting of each commodity in the index on historical production data.

For more on the contruction of the index and its unique "dynamic rolling approach", see the preceding article link and Deutsche Borse's CX Commodity Index info page.