A U.S commercial real estate derivatives market is slowly forming thanks to new products emerging in the U.S. and the growth of such products in the U.K. Some of the problems hindering the market are starting to be addressed, such as the lack of an appropriate index in the U.S. on which to base the derivatives. NAREIT, for example, has teamed with the Massachusetts Institute of Technology to develop indexes that will support derivatives on commercial property values. Based on REIT stock returns, they are expected to come to market later this year.
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