The Reuters CRB futures price index, a global benchmark for commodity prices, will undergo its first revision in 10 years under a deal between Reuters Group and Jefferies Financial Products. The revised index will be renamed the Reuters/Jefferies CRB index.
"We have been working with Reuters over the past year to try to make changes to the index so it will continue to provide a representative snapshot of commodities as an asset class," said Adam De Chiara, Jefferies Financial Products co-president, in an interview. "The changes we've made will also allow the CRB to become a more suitable product for investment purposes."
The changes, effective June 30, amend the index components to include three additional commodities: unleaded gasoline, aluminum and nickel. In addition, component weightings will take into account the relative significance and liquidity of the various commodity markets and component weightings will be rebalanced monthly.
"We are making the index widely available to any financial intermediaries or money managers or asset managers who wish to create investment products," Mr. De Chiara said. "The CRB index may be used as the benchmark for products designed to provide long-term exposure to the asset class. It is also very suitable for serving as the basis for products designed to allow people to express more shorter-term, tactical views on the direction of prices."