Chicago Mercantile Exchange (CME), along with noted economist Robert Shiller’s MacroMarkets, 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), a broker that executes housing futures and options.
Trading for this new index concept began on May 22nd and trading activity is rising steadily.
Like last week, Miami leads all markets with 119 contracts, followed by LA with 91 and San Diego with 52 contracts. Denver is at the bottom with 13 contracts.
Of the 10 markets that have indexes, Denver replaced New York as the only market to show a gain in the contract price (May 2007) this week, up 0.49%. Miami showed the greatest price weakness at -7.83% followed by San Diego at -7.29%. However, there was significant deterioration in most of the city indexes for May 07 contracts.
It would appear that the number of contracts sold is consistent with the most vulnerable housing markets.
Tags: Robert Shiller