In Lanser’s column More indexes to bet on [OCR] he announces that there will be house-price indexes offered by the Chicago Board Options Exchange (CBOE) as an alternative to the Chicago Merc’s indexes that will begin trading on April 26th.

This index will be based on the NAR’s price benchmarks. Here are the details [CBOE]. I am a bit surprised that financial instruments would be based on stats provided by a trade group rather than an independent resource.

They are expected to offer a

  • national index

  • four regional indexes (northeast, south, midwest and west)

  • 10 metropolitan areas to be named.

This is a bit out of my domain but I don’t think this type of trading is a zero-sum game. Does anyone have thoughts on this topic?

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