MIAX (Miami International Securities Exchange LLC), a creator and operator of high-performance securities exchanges, products and services, will launch cash-settled futures contracts on BRIXX Commercial Real Estate (CRE) Indexes developed by Advanced Fundamentals.
The first contract to be listed will be the BRIXX Retail Index futures contract which is expected to begin trading on October 4, 2021. Three additional BRIXX CRE Index futures are expected to be listed in the fourth quarter of 2021. Cash-settled options on the BRIXX CRE Indexes will launch on MIAX, also targeted for fourth quarter of 2021. The launch of the futures and options contracts remain subject to regulatory approval.
BRIXX futures and options will provide investors with targeted exposure to the $16 trillion commercial real estate market, including the residential, retail, office and hospitality sectors. BRIXX CRE Indexes measure real-time real estate returns and are priced using real-time public market data aggregating over $750 billion in property values. The design also allows the BRIXX CRE Indexes to be priced in terms that real estate professionals know and understand such as price per room key (hospitality), or price per square foot (residential, office, retail).
“We are pleased to launch the new BRIXX CRE futures, which are based on Advanced Fundamentals’ suite of index products that measure real estate prices without the pricing lag associated with traditional CRE indexes,” said Thomas P. Gallagher, chairman of the Minneapolis Grain Exchange (MGEX) and chairman and CEO of MIAX. “These products provide professional real estate investors with an innovative tool that affords real time access and synthetic exposure to the physical real estate market.”
Cash-settled futures contracts will be listed on MGEX via the CME GLOBEX platform and will be cleared by MGEX, a wholly owned subsidiary of MIAX’s parent holding company, Miami International Holdings.
“Until now, there has never been a successful real estate derivative product in the U.S. Advanced Fundamentals has completed considerable research and development in this market and created BRIXX CRE indexes to solve inherent deficiencies with existing products,” Jesse Stein, managing principal of Advanced Fundamentals said. “Through our index methodology, we can eliminate extraneous factors that negatively impact pricing calculations and are able to derive a more realistic value of the real estate holdings.”
