Welcome to this forum on home price derivatives. I’m John Dolan, the independent market maker for the S&P CaseShiller (home price index) futures that are traded on the CME. I would like to use this site to facilitate greater discussion of, and better understanding by academics, regulators, policy makers, rating agencies, traders and all interested parties in housing transactions(e.g. buyers, sellers, lenders, MBA, NAR), in the markets for home price products, how they can be traded, and how to interpret observed market prices.
Given recent “thinness” of these markets, I’ve decided to pursue a “less is more” strategy. I’m quoting fewer contracts (however anyone can contribute to missing quotes) while trying to provide tighter bid/asks where I do. My focus will be on shorter Nov expirations (x14, X15, X16) and calendar spreads.
Please feel free to email me with questions or suggestions at email@example.com . You can join the discussion on LinkedIn in the CME Case Shiller Home Price Futures group, and/or sign up for Twitter updates (mostly trade notices) at @HomePriceFuture
My hope is that with greater awareness, more contributions (quotes) from other traders, and a willingness by traders and hedgers to dabble in these products, that better liquidity will evolve for futures on this critically important financial market.
In my mind, these markets should be viewed as a community effort where opinions can be expressed and debated. Contributions, whether outright orders, spread quotes, or ideas to either side of the debate would be appreciated.
(I had to switch WordPress themes to get links to work. Content is the same. This theme works. Blogs are now on BLOGS section. Will stick with it for a while).
For those that want to say “thank you” for me compiling this information, you can show your appreciation with a contribution to an upcoming charity bike ride (NY to DC) that is designed to raise awareness on climate issues.