At the Chicago Mercantile Exchange, investors can now speculate on water prices.
This first-ever futures market for water means farmers, as well as investors, municipalities, and hedge funds can buy a legal agreement known as a "futures contract" that locks in a predetermined price for water that will be used in the future.
Discover magazine reports this kind of speculative trading has long been done for commodities, such as gold or oil, but not for a life-sustaining resource such as water.
According to the United Nations, more than 2.2 billion people worldwide lack access to clean drinking water. It fears that the situation will be exacerbated in the wake of water-price speculation instruments.
"I'm very concerned that water is now being treated as gold, oil, and other commodities that are traded on the Wall Street futures market," said UN Special Rapporteur Pedro Arrojo-Aguda, adding that water futures trading jeopardizes the access to water as a human right.
Look for the Chicago Mercantile Exchange to calm stakeholders by communicating that water futures are only be traded regionally and in small quantities. Plus, no water is flowing anywhere, as the only thing that happens with this financial tool is cash settlements.
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