LV on new CME Index Fund Offering
Author: Diana Heeb Bivona
The Chicago Mercantile Exchange plans to introduce cash-settled futures and options based on real-estate prices in 10 large cities including Las Vegas. The CME says the planned futures would be priced at the housing index level times $250.
Exchanges are scrambling to unveil the housing-market derivatives as more signs point to an end of the multiyear real-estate boom. Earlier this year, the Chicago Board Options Exchange announced its plans to launch futures contracts based upon median prices in the NAR’s existing-home sales data.