The CBOE Futures Exchange is going to offer property-linked futures contracts, using Radar Logic real estate indexes, the two firms announced Tuesday.

Daily house prices across the top 25 metropolitan statistical areas are already available on the Radar Logic Residential Property Index.

The CBOE Futures Exchange (a.k.a. CFE) will now list tradable residential property futures contracts based on those RPX values.

"Residential housing, which is among the largest asset classes in our economy, represents an exciting, new dimension for CFE," CBOE Futures Exchange managing director Andrew Lowenthal said.

By having listed instruments that trade, settle and clear through the exchange, the market participants will enjoy the benefits of the tools as well as the protection of the exchange environment, Radar Logic said in a statement.

The property contracts may also act as a risk-management hedge for institutional investors dealing with whole loan portfolios.

"We are going to provide the daily aggregate housing prices to the CBOE Futures Exchange," said Quinn Eddins, the director of research for Radar Logic. "It will allow both traders and institutional investors direct access to a highly liquid market in futures contracts based on the value of U.S. residential property."

Trading is subject to regulatory approval.

Write to Jacob Gaffney.