Basics: What If CUS Index composition weights change?

The weighting for Case Shiller composite indices (e.g. CUS 10-city, referenced in the CME contracts) may be adjusted 2- 3 years after the 2010 census, per the Case Shiller index methodology.  I raise this notion to: 1) increase awareness, 2) minimize concern, and 3) invite those who better understand index … Read More

Basics: The Ultimate FAQ: Why isn’t there more volume in the CME Case Shiller Home Price Index contracts?

Having addressed the technical FAQs in a recent blog, I’d like to address the most important FAQ: Why haven’t there been more volume in the CME Case Shiller futures?

In discussions with various interested parties over the past three years I’ve received lots of push-back as to reasons they won’t … Read More

Basics: Intercity Spreads: How to read them: Boston/New York example

If inter-city spread trades are going to be a focus for 2013 then it might help to explain what they mean.  That was the “constructive criticism” from one reader.  Point noted.

Let me use a rivalry that New York traders might relate to: New York vs. Boston.  After all saying … Read More