CME, Analytics Firm to Launch CRE Futures

The Chicago Mercantile Exchange is teaming up with San Francisco-based Global Real Analytics, a provider of real estate analytic products, to launch U.S. commercial real estate futures and options contracts.These financial derivative instruments are expected to begin trading in the first quarter of 2007, the CME said, and are the first that allow investors and speculators to protect their investments or gain exposure to the U.S. commercial real estate market. "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," said Rick Redding, the CME's managing director for products and services. Ten quarterly cash-settled contracts based on property type and geography will be available. More information on the CRE futures can be found online at http://www.cme.com/commercialrealestate.