NEW YORK, April 9 Bloomberg LP will take over control of one of the two largest commodity price baskets in the world as Swiss bank UBS steps away from the index business, the Financial Times reported on Wednesday.
While UBS has not sold the index itself or its intellectual property, it has transferred control and oversight of the 22-component index to Bloomberg, the FT reported citing Bloomberg Indexes' head Srikant Dash. He said Bloomberg had no plans to change the composition or methodology of the index.
Dash could not immediately be reached by phone.
The Dow Jones-UBS Commodity Index competes with the S&P GSCI index for the lion's share of the institutional and retail investor funds that flow into raw material markets, with an estimated $80 billion benchmarked against it.
The FT said the move precedes a July deadline for key financial market index providers to tighten oversight following a series of scandals involving financial market benchmarks.
UBS is "very, very focused on the independence of the benchmark. Anything we can do to reassure clients of that, we will do," the FT quoted Edmund Carroll, global head of commodities at UBS, as saying.