April 16, 2010
The Motion Picture Association of America (MPAA) affirms its resistance to movie box office futures trading, greeting today’s news of the Commodity Futures Trading Commission (CFTC) approving the application of MDEX (Trend Exchange) as a designated contract market for such products by issuing a press release stating such opposition and noting with relish that Sen. Blanche Lincoln of Arkansas, chair of the Senate Agriculture Committee (which has oversight of the CFTC) has added a provision to financial reform legislation currently working its way through Congress which prohibits futures trading based on box office receipts.
This may become a knockdown drag-out fight for the ages. Based on today’s news, Round One in this potentially epic boxing match, pitting the entertainment industry against the financial futures industry (i.e. TrendEx/Cantor Exchange) goes to TrendEx/Cantor on points. No knockdowns yet, and certainly no knockout. Stay tuned.
Visit Jabcat’s Box Office Futures Page for continuous news links and regulatory approval updates.
