Boxoffice futures market gets green light

Despite intense last-minute lobbying by major Hollywood studios, talent guilds and others, the first futures contract based on movie boxoffice results was approved Monday and are expected to start trading this year.

After delaying for a week, the U.S. Commodity Futures Trading Commission approved a request by the Trend Exchange to offer futures contracts and options on its MDEX Exchange aimed at large and institutional investors. The contracts would commence trading four weeks before a movie opened and end trading as the picture premiered on screens opening weekend.

The movie that was used as an example for the CFTC for a futures contract was Sony/Screen Gems' "Takers," which is scheduled to open Aug. 20, which means trading would commence the last week of July.


Film Business, Hollywood

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