Risk Markets And Politics

Thursday, April 20, 2006

Housing Futures: "Mark your calendar"

Apparently, the launch of the CME housing futures is being pushed-back from next week to mid-May. The margin requirements are still unknown, and their determination is a bit unusual since the historical volatility of the Case-Shiller Index is probably deceptively low.

In general, would it be crazy to suggest asymmetrical margin requirements and/or trading fees in order to make a market more balanced and liquid, at least temporarily?

4/21/06 Update: CME just released an official advisory targeting May 15th as a tentative launch date.

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