CBOE Futures Exchange plans to launch trading in futures on Radar Logic 28-Day Real Estate indexes, which measure asset values in the US residential housing market, on or after Thursday, 27 October.

The first futures contract CFE intends to list will be on Radar Logic's 25-Metropolitan Statistical Area (MSA) Composite Index (ticker symbol: RPXCP), which tracks values of the U.S. residential housing market as a whole. Today CFE filed with the Commodity Futures Trading Commission (CFTC) to offer trading in a number of Radar Logic 28-Day Real Estate Index (RPX) futures and released proposed contract specifications and margin requirements.

"The introduction of futures on the Radar Logic 25-MSA Composite Index will offer real estate lenders, developers, investors and insurers an efficient way to help protect against or seek to take advantage of declining or rising residential values in all types of real estate environments," CBOE Futures Exchange Managing Director, Andrew Lowenthal (pictured), says. "Previously limited to over-the-counter transactions, CFE's listing of this comprehensive real estate index will provide users with the added benefits associated with exchange trading – transparency, price discovery, certainty of execution and protection against counterparty risk through centralized clearing."  

Metropolitan areas included in the 25-MSA Composite Index are Atlanta, Boston, Charlotte, Chicago, Cleveland, Columbus, Denver, Detroit, Jacksonville, Las Vegas, Los Angeles, Miami, Minneapolis, Milwaukee, New York, Philadelphia, Phoenix, Sacramento, San Diego, San Francisco, San Jose, Seattle, St. Louis, Tampa and Washington, DC.