CMC Markets launches three new indices for the energy, agricultural and precious metals sectors

The Energy Index is composed of two types of crude oil, West Texas and Brent, as well as heating oil, natural gas, gasoline and diesel. The Agricultural Index consists of a total of 12 commodities, including wheat, corn, soybeans, sugar and coffee.

CMC Markets, one of the world’s leading spread betting and contracts for difference (CFD) providers, now offers its customers three new commodity indices: the Energy Index, Agricultural Index and Precious Metals Index.

This gives clients the opportunity to invest in multiple raw materials simultaneously and cost efficiently, with just one transaction. It can also reduce the volatility risk of the individual commodities. Please remember, spread bets and CFDs are complex products and come with a risk of losing money rapidly due to leverage.

Simon Campbell, Group Head of Trading, commented: “Gold and oil in particular have moved more and more into traders’ focus in recent weeks. While precious metals are being hailed as a safe haven during turbulent times on the stock markets, the oil price is reacting to the recent rise in geopolitical risks.”

“However, since oil prices and other energy commodities such as natural gas do not generally react equally well or in the same direction, our new Energy Index offers a good opportunity to spread risk across multiple commodities. In addition, our Precious Metals and Agricultural indices offer similar diversification benefits for these commodity sectors” concluded Mr Campbell.

The Energy Index is composed of two types of crude oil, West Texas and Brent, as well as heating oil, natural gas, gasoline and diesel. The Agricultural Index consists of a total of 12 commodities, including wheat, corn, soybeans, sugar and coffee.

As a rule, the individual commodities are weighted according to their average daily trading value of the nearest six futures contracts. Gold and silver are each weighted at 35% in the Precious Metals index, with platinum and palladium weighted at 15%.

The new product range can be viewed by clicking here.

Read this next

Digital Assets

BlockTower teams up with Centrifuge to bring real world assets to DeFi

The protocol empowers businesses to tokenize non-crypto assets such as mortgages, invoices and consumer credit, to create asset-backed pools that create an investment opportunity, and as a result, democratizing access to capital.

Digital Assets

Solana-powered game DeFi Land launches Play-and-Earn features

The Play-and-Earn mechanics announcement comes on the heels of a collab between DeFi Land and STEPN. DeFi Land will soon announce chain integrations, an alpha mobile version, and a multichain feature. 

Retail FX

Spotware rolls out Manager’s API for cTrader brokers

Spotware Systems, a technology provider for the electronic trading industry, has released its new Manager’s API for Brokers, providing powerful tools for server-server integration.

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

<