Bloomberg will be in charge of the governance, calculation, distribution and licensing of the Dow Jones-UBS Commodity Index Family.
The commodity basket, which is one of the two largest of its kind globally, will be called the Bloomberg Commodity Index Family.
"Benchmarks are at the heart of the financial system, and benchmark independence is key to the transparency and efficiency of global financial markets," said Dan Doctoroff, CEO and President of Bloomberg. "By providing true independence to a leading index family used by institutional investors and asset managers around the world, Bloomberg continues to support the needs of our clients and the overall marketplace."
Bloomberg and UBS have already partnered in providing industry leading commodity benchmarks. In 2007, Bloomberg and UBS created the UBS Bloomberg Constant Maturity Commodity Index (CMCI), an index family that provides diversified commodity exposure across the full spectrum of the futures curve.
Despite some news reports suggesting that UBS might be moving away from the index business, the rumours were dismissed by UBS’s global head of commodities Edmond Carroll in a statement:
"With this partnership, UBS continues to be a leading and innovative player in providing best-in-class commodity benchmarks for our clients. Bloomberg is a globally renowned index provider and administrator and we are excited about the market leading solutions and energy this partnership will bring to the commodity index space."
The Dow Jones-UBS Commodity Index competes with the S&P GSCI Index for the majority of funds invested into raw material markets.
Financial market index providers are facing increasing scrutiny from regulators following several scandals involving market benchmarks. At the same time, index-based investing has been expanding quickly.
The largest index providers teamed up in 2012 to form the first Index Industry Association to create a single voice for the industry.