The Chicago Board of Trade (CBOT®) today successfully launched its new futures contract based on the Dow Jones U.S. Real Estate Index(SM) (DJUSRE). DJUSRE Index futures contracts are designed to help market participants capitalize on changes in the real estate sector of the stock market and better manage commercial real estate exposure.
The new DJUSRE Index futures contract is intended to accommodate the needs of institutional real estate investors and the commercial real estate market. It settles to the value of the DJUSRE Index, which is comprised primarily of Real Estate Investment Trusts (REITs). REIT securities often track the underlying U.S. commercial real estate market, with REIT share prices driven in part by lease rates, vacancies, development costs and property transaction values.
CBOT President and CEO Bernard W. Dan said, “In the research and development phase for this new contract, we spoke with various market participants who sought new means for managing the risks associated with commercial property ownership. The new contract is a natural extension to our Equity Index product complex. We expect the combination of deep CBOT liquidity and the highly-regarded Dow Jones U.S. Real Estate Index to bring an array of new trading opportunities to the marketplace.”
In addition to today’s launch of the new DJUSRE Index futures contract, the CBOT also introduced three market makers for the new product. Susquehanna Investment Group, Wolverine Trading, LLC and Allston Trading, LLC will help provide a reliable two-sided market for CBOT market participants.
The new DJUSRE Index futures contract trades on the CBOT electronic trading platform from 6:15 p.m. – 4:00 p.m. CT (the following day), Sunday through Friday. The contract, which is settled in cash, has a value equal to $100 multiplied by the value of the DJUSRE Index.
For additional information on the DJUSRE Index futures contract, please visit www.cbot.com/realestate.
About the CBOT
As one of the leading global derivative exchanges, the Chicago Board of Trade provides a diverse mix of financial, equity and commodity futures and options-on-futures products. Building on its 158-year history, the CBOT continues to advance into the future using the strength of deep liquidity, market integrity and member-trader expertise. Using superior trading technology in both electronic and open-auction trading platforms, the CBOT provides premier customer service to risk managers and investors worldwide. For more information, visit our website at www.cbot.com.
