The Action Center on Race and Economy (ACRE) claims that trading water futures for the first time this week on Wall Street is bad news for the color communities.
The Racial Justice Group took this position when CME Group Inc., a Chicago-based global exchange for futures and options trading, signed contracts that enable industrial water consumers to move from trading water to one of the world’s most basic resources to benefit. The activity turns water on gold, oil and other commodity futures on Wall Street.
“The trade in water, a natural resource essential to human life, is a signal that even our most basic necessities are not protected from financial interests,” said Brittany Alston, ACRE’s assistant director of research. “Water scarcity is both a human rights and public health crisis. As a result, black, brown, indigenous, and poor communities will suffer the most damage from the continued commercialization of water, while the ultra-rich and financial institutions will benefit. “
CME Group first announced $ 1.1 billion in agreements related to the California water market in US markets, Kalkine Media reported. The Nasdaq Veles California Water Index trades under the ticker symbol NQH2O.
The report found that farmers, hedge funds and metropolitan areas will be able to hedge against potential water scarcity starting this week. CME believes this will help consumers better connect with the supply and demand of water, according to Kalkine Media.
Futures trading begins amid worries about water scarcity around the world.
ACRE claims the threat of widespread water scarcity in the United States, particularly in the western states, is growing. Wall Street people are showing more interest in marketing water.
The CME Group declined to comment on ACRE’s position when contacted by Black company.
ACRE’s communications director Tia Oso added that the issue was also worrying as privatization and private management of natural resources are a public policy failure.
According to Oso, the finalization represents the interest of Wall Street companies and their profits in human life. This could be detrimental to U.S. residents due to events like the ongoing Flint, Michigan water crisis. In this city, the public water source has been contaminated since 2014, while private companies, including the Nestle consumer goods power plant, have been granted the right to clean water sources.
Alston added that marketing water will force states and municipalities to compete with large, water-intensive industries. “This announcement also underscores the willingness of financial institutions to put profits above the needs of communities, especially drought-stricken communities in the western US that are concerned about the current availability of water for basic uses.”