Chicago Mercantile Exchange (CME) , along with noted economist Robert Shiller’s MacroMarkets, as well as Fiserv and Standard & Poor’s, have created a market exchange for futures and options contracts on home prices in ten cities in the United States . The data feed from the index is provided to Matrix from Tradition Financial Services (TFS) , an institutional broker that trades housing derivatives.
Trading for this new index concept began on May 22nd and trading still appears relatively light. The data set is small but intriguing so I plan to post an update 1-2 times per week.
Miami leads all markets with 86 contracts, followed by LA with 65 and Las Vegas with a distant 20 contracts. San Francisco has garnered the least activity with 2.
Of the 10 markets that have indexes, only New York showed an expected gain in the long contracts (May 2007), up 0.01%. Boston showed the greatest weakness at -3.48% followed by San Diego at -2.45%.