There were a number of serious inaccuracies in the editorial titled “Benchmark index sees massive overhaul; The CRB is dead; long live the CRB” (T.N.M., June 24-30/05). It implied Reuters and the other institutions involved could potentially alter the Reuters/Jeffries Commodity Research Bureau Index in their own interest. This must be refuted.
The methodology underlying the CRB index is public, transparent and widely disseminated. An oversight committee is in charge of all changes to the RJ/CRB Index construction, making it impossible for any one individual or company involved to “dampen” commodities performance.
Reuters is indeed bound to uphold our principles of integrity, independence and freedom from bias in our content in any future discussion around changes to the methodology.
Also, constituent weightings do not change from month to month. The index is rebalanced monthly to the predetermined percentage weightings set out within the methodology for the index, which is available to the public.
The Continuous Commodity Index (or CCI, as the “old” CRB Index algorithm is now known) is trading under the new “CI” ticker on the New York Board of Trade (NYBOT). Trading on the “CR” ticker on NYBOT, settled against the RJ/CRB Index, re-started on July 12.
Reuters will be happy to answer any queries your readers may have regarding the Reuters/Jefferies CRB Index.
Yasmeen Khan
Reuters Corporate Communications
London, U.K.
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