Index clampdown

The growth of commodity index investments has lured an increasingly diverse investor base into commodities in recent years. But with new regulations due to be announced in December, could this process be thrown into reverse? Mark Pengelly reports

Commodity indexes have attracted a lot of attention in recent years – not all of it good. Proponents of the products say they’ve made it easier for a much broader range of players to gain access to the commodity market, furthering its development as an asset class. Not only can commodity indexes be delivered in a variety of ways, including swaps and exchange-traded funds (ETFs), but they can also be tailored to suit specific investors. Dealers say major users of the products range from retail