CME Group will launch on Oct. 28 futures and options on futures contracts on the Standard & Poors/GRA Commercial Real Estate indexes, said CME spokeswoman Mary Haffenberg.
Ten new cash-settled contracts, which will trade on the Globex platform, will allow investors to hedge risk or gain exposure in the $5.3 trillion U.S. commercial real estate market. They will be based on different property types, such as offices or warehouses, and five regions.
U.S. commercial real estate as an asset class makes up 35.3% of the global commercial real estate market, valued at $15 trillion, according to data provided by the CME. Last year, the CME launched derivatives contracts on the U.S. residential markets in 10 cities and one composite index.