Fastmarkets, a leading cross-commodity price-reporting agency (PRA), is excited to announce that Bloomberg Index Services Limited has introduced new indices utilizing FASTMARKETS’ commodity pricing. These indices track the performance of lithium and cobalt futures contracts, referenced on Fastmarkets global prices, and are listed on COMEX.
Fastmarkets’ proprietary prices serve as the foundation for CME Group futures contracts which are the underlying constituents tracked by the Bloomberg indices. These indices are anticipated to further position Fastmarkets’ benchmark prices within financial markets, enhancing liquidity and relevance to a new community of financial service organizations.
Product highlights:
- New indices launched: Single commodity indices for lithium (BCOMLM, BCOMLMT) and cobalt (BCOMCB, BCOMCBT)
- Data utilization: CME Group futures contracts are used for the indices, with CME Group futures settling against Fastmarkets’ physical market assessments
- Market impact: The indices can be used by financial investors with broad commodity market exposure to further diversify returns. They can also be used to provide capital efficient exposure to commodities linked to energy transition space
- Significance for Fastmarkets customers: Position Fastmarkets prices in a new segment of the commodity ecosystem, enhancing visibility and market value
Przemek Koralewski, global head of market development at Fastmarkets, said: “This launch not only elevates the visibility of our prices but also promotes the CME Group lithium and cobalt futures contracts to the financial sector. Inclusion in Bloomberg’s commodity indices family brings additional prestige and recognition to our benchmarks.”
Jigna Gibb, Head of Commodities & Crypto Index Product, Bloomberg Index Services Limited, said: “Energy transition is a central pillar of climate risk mitigation strategy and as a result of transitioning away from fossil fuels, we can expect an increased demand for metals like lithium and cobalt due to their role in renewable energy projects, infrastructure and electric vehicles. Bloomberg partnered with Fastmarkets for access to a reliable, extended data set on the lithium and cobalt markets.”
