Auspice Capital launches live index tied to Canadian crude oil

The new index is tracked and reported on the New York Stock Exchange website and is directly available to traders via their Bloomberg terminals under the ticker symbol “CDNCRUDE”.

The new index serves as the only benchmark for oil produced in Canada, Auspice Capital Advisors says in a statement.

CCI allows investors to track the price, risk and volatility of the Canadian commodity. Priced in U.S. dollars, the index employs a rolling three-month exposure in order to improve liquidity, lower transaction costs and reduce the effects of contango (a situation where the futures price of a commodity is higher than the expected spot price).

Each trading day, the index value is determined by its third-party calculation and publication agent, the NYSE Global Index Group, based on daily returns of prices published by ICE Futures Europe.

“Canada has the third-largest oil reserves in the world and is the leading exporter of crude oil to the United States,” says Tim Pickering, founder and CIO of Auspice Capital Advisors. “As such, it is important for investors to be able to actively track the commodity and capitalize on its performance. Through the launch of the live version of the Canadian Crude Oil Index, the transparent and liquid benchmark will provide greater access to investment positions within the commodity and ultimately enhance overall market participation.”

The CCI allows investors to identify opportunities and speculate outright on the price of Canadian crude oil. The firm’s Canadian Crude Oil Index ETF (TSX: CCX) capitalizes on the current market’s performance by replicating the returns that an investor would expect to receive from holding and rolling the contracts encapsulated within the benchmark index. Outside of the wholesale marketplace, it is the only way to invest within the commodity.