Home Price Indices Futures

  • April 12, 2008
  • • Written by: Damir Tokic, Ph.D. Stijepko Tokic, J.D. 

Spring 2008 Vol. 33, No. 1
Abstract: This article analyzes the potential use of the Chicago Mercantile Exchange (CME) housing futures for hedging, arbitrage and speculative purposes. We argue that because of the lack of volume in listed contracts, CME housing futures are not likely to attract hedgers, arbitragers or speculators. However, CME housing futures can be very useful in stabilizing the housing market, at least in the short term, should home prices “free fall.”