U.S. Real Estate Index Futures To Trade on Chicago Exchange
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The Chicago Board of Trade has created a new index for Real Estate futures. They will focus on REITs, Real Estate Investment Trusts, which are used typically for commercial and multi family properties. The index should provide an easy to follow indicator of where the commercial markets are headed.
The Chicago Board of Trade (CBOT®) today announced that its new futures contract based on the Dow JonesSM U.S. Real Estate IndexSM (DJUSRE) will launch on February 21, 2007. The electronically-traded DJUSRE Index futures contract is designed to allow market participants to capitalize on changes in the real estate sector of the stock market, and better manage commercial real estate exposure.
The new DJUSRE Index futures contract is the result of extensive research by the CBOT to develop an exchange-traded product that best accommodates the needs of institutional real estate investors as well as the commercial real estate market. It will settle to the value of the DJUSRE Index, which is comprised primarily of Real Estate Investment Trusts (REITs). REIT securities often track the underlying U.S. commercial real estate market, with REIT share prices driven in part by lease rates, vacancies, development costs and property transaction values. via Huliq


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[…] Estate Bloggers has a piece about a new U.S. Real Estate futures index that will begin trading n the Chicago Exchange. The index will focus on […]