CBOT Dow Jones ®
U.S. Real Estate Index Futures: SM
Expressing Your Views on the
U.S. Commercial Real Estate Market
T hink you have an idea where the U.S. commercial real estate market is headed?
What’s the best way to try to profit from being right?
The commercial real estate market is large and growing, and with CBOT® Dow Jones U.S. Real Estate
(DJUSRE) IndexSM futures, traders now have a way to capitalize on their opinions about where this market is
going. Whether you are bullish or bearish on real estate, DJUSRE Index futures provide you with a flexible,
efficient means to trade on your views.
Moreover, as a stock index futures contract based on the Dow Jones U.S. Real Estate Index—comprised
primarily of REITS—CBOT DJUSRE Index futures combine the benefits of broad-based exposure to the
commercial real estate market with the significant advantages of an exchange-traded vehicle.
What do DJUSRE Index Futures Offer?
Standardized, exchange-traded futures markets maximize liquidity, narrowing bid-offer spreads and enabling traders to enter and exit the
market with lower transaction costs. The DJUSRE Index futures market makers—Allston Trading, Susquehanna Investment Group and
Wolverine Trading—help provide a two-sided market for DJUSRE Index futures market participants.
Real Estate Exposure Without Ownership
DJUSRE Index futures provide a more cost-effective and efficient means to speculate in real estate, without the obligation of actually
owning the underlying property.
Ability to Short the Real Estate Market
The nature of futures markets means that DJUSRE Index futures can be sold as readily as they are bought, allowing an efficient method
of shorting the real estate market. Moreover, traders are not subject to uptick rules, or loans for short selling as can be the case with
stocks or other types of investments.
Because DJUSRE Index futures are electronically traded, traders and investors can access the market nearly 22 hours a day. DJUSRE
Index futures are available to trade from 6:15 p.m. to 4:00 p.m. Chicago time, Sunday through Friday.
As with all CBOT contracts, DJUSRE Index futures provide universal price transparency and a level playing field. The CBOT electronic
trading platform displays bid prices, offer prices, and depth of book information, thereby maximizing price competitiveness. Market
participants can access free live quotes on the CBOT website.
The information in this publication is taken from sources believed to be reliable. However, it is intended for purposes of information
and education only and is not guaranteed by the Chicago Board of Trade as to accuracy, completeness, nor any trading result and does
not constitute trading advice or constitute a solicitation of the purchase or sales of any futures or options. The Rules and Regulations
of the Chicago Board of Trade should be consulted as the authoritative source on all current contract specifications and regulations.
“Dow Jones ,” “The Dow ,” and “Dow Jones U.S. Real Estate IndexSM,” are service marks of Dow Jones & Company, Inc. and have
been licensed for use for certain purposes by the Board of Trade of the City of Chicago, Inc. (CBOT®). CBOT’s DJUSRE Index futures
contract based on the Dow Jones U.S. Real Estate Index, is not sponsored, endorsed, sold or promoted by Dow Jones, or any of its
Strength. InnovatIon. tranSparency. subsidiaries or affiliates, and none of Dow Jones, or any of its respective subsidiaries or affiliates makes any representation regarding
the advisability of investing in such contracts.
©2007 Board of Trade of the City of Chicago, Inc. All rights reserved. 07-XXXXX www.cbot.com
Expressing Your Views on the Real Estate Market
DJUSRE Index futures offer you an opportunity to benefit from your outlook regarding the U.S. commercial real estate market.
For example, suppose you felt there would be a downtrend in the commercial real estate market. To capitalize on your expectations,
you would sell (short) DJUSRE Index futures.
This trade is illustrated in the chart below with a hypothetical position that was initiated in March DJUSRE Index futures on February 21,
2007 and lifted on March 14, 2007.
Example: March 07 DJUSRE Index Futures Hypothetical Trade*
February 21, 2007 March 14, 2007
Futures Transaction (contracts) Sell 5 Buy 5
Resulting Position (contracts) Short 5 Flat
Contract Price 362.9 330.8
Price Change (points) 32.10
$ per Price Point per Contract $10.00
Net Profit per Contract $321.00
Net Profit for Position $1,605.00
* Does not include transaction costs.
DJUSRE Index Futures Salient Features
Contract Size $100 x Dow Jones U.S. Real Estate Index
Price Quote Points and tenths (1/10th) of index points
Tick Size 1/10th of one index point = $10.00 per contract
Contract Months Four months always listed in March quarterly cycle: March, June, September, December
Last Trading Day The trading day preceding final settlement day
Settlement Cash settlement. Final settlement price determined by special opening quote (SOQ) on the
third Friday of the contract month at approximately 8:30 a.m. Chicago time
Trading Platform Electronic only
Trading Hours 6:15 p.m. to 4:00 p.m. Chicago time, Sunday through Friday
Ticker Symbol Electronic: RE
Daily Price Limit If there is a trading halt declared in the primary securities market, trading shall be halted.
Price limits correspond to a 10%, 20%, and 30% decline in the DJIA.
Margin Information Visit www.cbot.com for current margin information.
For more information visit www.cbot.com/dow, or contact the CBOT at email@example.com