Late inning Hail Mary or serious monkey wrench? Hollywood’s movie studios have objected to the expected approval by the Commodity Futures Trading Commission of two new commodities based on movie box office receipts slated for real money trading in the financial markets. Sounds like a regulatory smack-down in the making. Consider these reported comments in the burgeoning box office futures face-off.
“The reputation and integrity of our industry could be tarnished by allowing trading in the movie futures contracts in a manner which allows them to be viewed as the economic equivalent of legalized gambling on movie receipts,” said a letter from MPAA’s interim chief exec.
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“We are confident the issues raised by the trade organization are without foundation, but we are happy to readdress them with the CFTC,” replies Rob Swagger, CEO of the company behind one of the futures exchanges.
Also see:
Jabcat’s News-Resources-Links Page for Box Office Futures.
Understanding Movie Box Office Futures: Lesson 1
