Standard & Poor's announces launch of S&P GSCI Dynamic Roll index

By Melissa Kory

Cleveland, Jan. 27 - Standard & Poor's announced the launch of the S&P GSCI Dynamic Roll index for investors seeking long-only exposure to the commodity market but with the desire to reduce the potential negative impact of contango on roll returns.

Contango describes a situation in the futures market where prices for future delivery are higher than prices for nearer delivery.

The index is an enhanced version of the S&P GSCI commodities index and is licensed to BNP Paribus to serve as the basis for BNP Paribus investment products based upon the index.

"The development of the S&P GSCI Dynamic Roll index is based on market demand for indexes that can potentially alleviate the negative impact of rolling into contango and offering lower volatility exposure to the commodity market," Michael G. McGlone, senior director of commodity indexing at S&P Indices, said in a news release.

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