In late 2020, the Chicago Mercantile Exchange (CME) launched the first water futures market, called the Nasdaq Veles California Water Index Futures. This market allows financial speculators to literally gamble on the price of water. But how does that actually work? And what are the consequences? … In California, as in other western states, rights holders can sell or lease the rights to use the water to others. The index that Nasdaq Veles created is a single number that estimates the prevailing price of water in California. This number changes as water prices change. It’s based on an algorithm and a supposedly representative list of transactions — both of which Nasdaq Veles keeps confidential.