ICAP and Radar Logic Incorporated, the analytic and data company that powers the Residential Property Index(TM) market (RPX(TM)), have reached an agreement to form a joint venture related to the RPX market.
In addition, ICAP has signed a license to act as the first authorised interdealer broker for derivative transactions based on the RPX. These derivatives will allow users to hedge risk on residential property prices in 25 major cities across the United States.
As part of the joint venture, ICAP has been appointed the authorised broker to conduct the market fixing of residential property derivatives prices. The ICAP Radar Logic fixing will be established on a daily basis.
“Derivatives based on the RPX offer institutional customers a means to hedge their U.S. residential property risk, and we expect these products to have a unique acceptance among dealers and market participants,” says Doug Rhoten, Chief Executive Officer, ICAP North America.