CHICAGO –- Look for a new stock index futures contract based on the Dow Jones U.S. Real Estate Index from the Chicago Board of Trade during the first quarter of the year.

The CBOT stated in a release the new contract "will allow market participants to capitalize on changes in the real estate sector of the stock market and better manage commercial real estate exposure."

The new contract will be launched under a licensing agreement between the CBOT and Dow Jones. It will settle to the value of the Dow Jones U.S. Real Estate Index which is comprised primarily of Real Estate Investment Trusts (REITs).

In the CBOT release, Robert Ray, senior vice president of business development, said, "Commercial real estate remains one of the largest classes of tradeable assets not currently served by an exchange-traded futures instrument. We developed this contract after researching the U.S. commercial real estate market and conducting various conversations with real estate portfolio managers and pension funds who seek new avenues for managing the risks associated with property ownership. Moreover, since the underlying instrument is an equity index, it also provides investors with an efficient means to express their views on movements in the real estate market, with the added advantages of transparency, leverage, liquidity and the ability to more efficiently short the market."

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