The Chicago Mercantile Exchange will begin trading in US housing prices in April 2006 as a way to hedge or play housing prices [CNN/Money]. It will be based on the the median sales price of housing in:

  • Boston
  • Chicago
  • Denver
  • Las Vegas
  • Los Angeles
  • Miami
  • New York
  • San Diego
  • San Francisco
  • Washington, D.C.

and a composite index.

Could this be protection for mortgage companies against fluctuating prices, not unlike other exchanges like coffee, sugar, cocoa, frozen orange juice, and an array of others?

Update To This Post:
[Original Chicago Mercantile Press Release]
[Wall Street and Technology]
[Sign On San Diego]

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