American Stock Exchange (Amex) is working with a research firm to develop unique new hedging securities that may cover everything from home prices to commodities and college tuition.
The new products, called macro securities, are patented by Macro Securities Research, based in Cambridge, Massachusetts, and could be offered on Amex by year-end. Amex and Macro Securities executives said they are currently developing securities contracts on residential home prices, mortgage pre-payments, mortgage defaults and commodities. But other concepts are also being discussed such as college tuition, health care costs, salaries, even a country's Gross Domestic Product.
The new contracts are the first...