Friday, November 11

Real Estate Futures to Trade at the CME

Set to debut in April at the CME, this futures contract will be "based on the median home price in ten U.S. cities".

The exchanges are continuing to offer new products in an effort to compete with newcomers for order flow. Some have gone public already, and more will surely follow. Let's go to the charts to see how they're doing.

The ISE is an all electronic options exchange here in the U.S. in competition with the five others, four of which are floor-based. It has run up about 30% in the last month, and is at risk of a little correction as those holding paper profits might be quick to take some off the table. But the volume shows big accumulation and the stock is a great bet for the long haul. A good buy around $27 1/2 if it comes in.

The Arca exchange has already started to come in after a quick runup from $40 on strong volume. As long as it continues to act well, it would be a great buy at $45, at the 50 day moving average.

The small group of publicly traded exchanges, which includes BOT, NDAQ and of course the CME, will continue to innovate and grow as public firms. They should be considered for the trading vehicles that they are, and also as good investments.

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