said Thursday that it would team up with Global Real Analytics to launch U.S. commercial real estate futures and options contracts based on the GRA Commercial Real Estate Indexes (CREX).
These tools are scheduled to begin trading in the first quarter of 2007.
"Commercial real estate represents a significant asset for many institutions and these products will create a liquid and transparent market that can be used by these market participants to help reduce risks associated with holding real estate assets,'' CME said.
Ten quarterly cash-settled contracts based on property type and geography will be available. The listings include a composite index, indexes on property types consisting of retail, office, apartments and warehouse properties and five U.S. regional indexes covering Desert Mountain West, Mid-Atlantic South, Northeast, Midwest and Pacific West. Combinations of these indexes are also being considered. GRA CREX data is based on recorded transactions and revised monthly. Trading of CME U.S. commercial real estate indexes will occur on CME Globex, the exchange's electronic trading platform.
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