Liv-ex has teamed up with Intrade.com, the prediction market, to launch the world's first publicly traded futures contract on fine wine.
As James Miles, Director of Liv-ex, explains: “Liv-ex’s cooperation with Intrade to create a cash settled futures market in fine wine is a ground breaking development. At a time of heightened uncertainty in the market it will give all participants including producers, merchants, wine funds and collectors an opportunity to hedge their exposure to the underlying market. It will also allow investors to benefit from changes in fine wine prices without having to take delivery of the goods, pay storage charges or worry about provenance.”
Intrade will initially run three contracts on the Liv-ex 100 Fine Wine Index – the industry’s leading benchmark – expiring at end November, December and January. Put simply, you can either buy or sell the index based on whether you think it will close above or below the quoted level at the end of the period. The contract terms can be found at www.intrade.com.
For more information on the Liv-ex 100 and how it is calculated see liv-ex.com.
As announced earlier in the year, you can also have a spread bet on the Liv-ex 100 with ODL Markets.