Moscow Exchange launches trading in real estate index futures

On 31 January 2022, the Moscow Exchange Derivatives Market will start trading in a cash-settled futures contract on the Moscow Real Estate Index, which is calculated on the basis of actual mortgage transactions.

The new instrument will provide additional opportunities for financial market participants and their clients by:

• allowing the widest range of clients to invest in the Moscow real estate market with little capital, including those saving for a down payment on a mortgage;
• expanding the range of investor trading strategies, including the option for short selling;
• offering issuers of structured products and asset management companies to create new investment vehicles, and for real estate developers to hedge market risk.

The futures contract ticker is HOME; the contract price is the price of 0.1 square meter (about RUB 25,000); the tick is 10 points; and the tick value is RUB 10. Futures series with settlement in March and June 2022 have been offered. The expiration settlement price will be the last value of the index before the contract settlement day.

The Moscow Real Estate DomClick Index is calculated by Moscow Exchange on the basis of actual real estate transactions. The index value is calculated as the weighted average price per square meter of residential space across the city of Moscow. The Index is calculated on a weekly basis and is reviewed quarterly. The Index includes apartments in multi-story apartment buildings and excludes luxury real estate with a sale price exceeding RUB 30 million.