S&P/GRA Commercial Real Estate

S&P/GRA Commercial Real Estate Index (SPCREX) Options
These products offer a new way to hedge and gain exposure to the $5.3 trillion U.S. commercial real estate market, one of the most significant asset classes in the U.S., without buying and selling properties. This market represents approximately 35% of the global commercial real estate market, which is valued at $15 trillion. These products are based on the benchmark SPCREX indexes, which measure transaction-based changes in U.S. commercial real estate prices. SPCREX options provide a way to:

• Limit downside risk while also maintaining the possibility of profiting from favorable changes in the futures prices
• Hedge values in down markets
• Take advantage of profit opportunities stemming from price fluctuations in all types of markets

You can trade SPCREX options by the following property sectors and geographic regions: 

Things to know:

• You can trade contracts out 20 quarters (5 years) on your choice of:
  • A national composite index
  • 5 geographic regional indexes
  • 4 national property type indexes
• Traded via:
  • Block trades
  • Open outcry on the CME Group trading floor during open outcry trading hours
• Premium-based with European style expiration
  • Exercisable only on the last day of trading
• You can view free real-time prices on our Web site
  
• Exercised into futures contracts which are then cash-settled
• CME Clearing clears all trades and guarantees counterparty creditworthiness

 About the S&P/GRA Commercial Real Estate Indices
The S&P/GRA Commercial Real Estate Indices (SPCREX) Options are designed to be a reliable and consistent benchmark for commercial real estate prices in the United States. These indices measure the change in commercial real estate prices by property sector and geographic region.

The indices are maintained and published under agreements between Standard & Poor’s and GRA/Charles Schwab Investment Management (CSIM).

Index Governance
The S&P/GRA Commercial Real Estate indices are maintained and governed by the S&P/GRA Index Committee. Three members are appointed by Standard & Poor’s, two members are appointed by GRA; Standard & Poor’s designates the Index Committee Chairman. The Index Committee has full discretion over index policy including calculations, revisions, restatements, methodology and any other matters related to the SPCREX Indices to determine how the indices are calculated.