Licensing new commodity index

Discussion in 'Energy Futures' started by HLB, Jan 4, 2009.

  1. HLB



    I looking for information and people with experience in designing / trademarking / registering of new commodity indices.

    Suppose you have new spot market, without any indices and derivatives and you want to provide foundation for market making and risk management. How would you do it?

    What's the usually contract terms for licensing index to exchanges and market data providers?

    You may PM me.

    Thanks in Advance,
  2. 1)
  3. MGJ


    Market Wizard Victor Sperandeo did exactly that. He created an index and licensed it to Standard & Poors. It's now called the S&P Diversified Trend Index, and is investable via ETFs offered by Rydex.

    The good thing about it, from your perspective, is that Sperandeo published his sales presentation (that he gave to S&P when trying to persuade them to license his Index). The presentation is offered in book form (here). Don't let the title confuse you; that was just slapped on later, in an attempt to market the book to a wider audience. The truthful title of this book is: "This is the exact material I used to convince S&P to license my Commodity Index."