Fresh water is recognised as a commodity by the EU and is subject to both an increasing demand and a limited supply.

It is subject to a wide range of prices, tax rates, exit fees and other regulations.

AQUA INDEX provides the first ever platform for the creation of a market for stable investment in water, enabling development of indices, futures and other derivatives.

AQUA INDEX estimates that trade in water may represent 10% of the daily turnover in agricultural commodities, or $4.5bn per day.

Water as an asset, and therefore collateral, may be used as security for financing of any sort, creating capital that hitherto was unrecognised.

The world’s commodity exchanges, such as the Chicago Mercantile Exchange (CME) and the London Commodity Exchange (LCE – now part of LIFFE), have yet to trade securities or derivatives on water.

AQUA INDEX will introduce trade in water as certificates, futures, options and other derivatives to the international financial markets.