London 25 September 2009 

The world's largest commodity index, S&P GSCI, is working on a commodities trading benchmark that excludes prices from U.S. markets in response to tougher regulation from Washington, the Financial Times said on Friday. 

The U.S. Commodity Futures Trading Commission aims to rein in speculation in energy and commodity trading, which some blame for sending food and oil prices to record highs last year. [ID:nCFTCREG]

The threat of new regulations coming into force by November has prompted investors to look for new benchmarks, which could hit trading volumes on New York and Chicago's commodities exchanges.

"People will find other ways of investing in commodities," Michael McGlone, head of S&P GSCI, told the British business daily, adding that the provider was "seriously exploring an ex-US index" after many of its clients asked for an answer to the looming clampdown.

Some investors fear the regulations could hinder their ability to invest in commodities tracked by the existing index, which is largely based on prices from exchanges in the United States, the FT said. (Reporting by Daniel Fineren; editing by Carol Bishopric)

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