Approved! We’ve been waiting on pins and needles. The decision is finally here. The Commodity Futures Trading Commission (CFTC) has approved the Trend Exchange Opening Weekend Motion Picture Revenue Contracts for trading. But does it matter?
The eagerly anticipated decision, delayed one week, comes as Congress appears poised to ban movie box office futures in the Financial Regulatory Reform Bill (Wall Street Reform Bill) currently in Conference Committee. The Conference is working to meld a Senate bill, that includes a ban on movie box office futures, with a House bill that contains no such ban. Early reports suggest the final bill will contain the movie futures ban. Hence, today’s CFTC decision may be meaningless. But as one report about today’s approval notes, there may be a disagreement as to whether a Congressional ban would impact previously approved futures contracts. Of course, the Senate and House members on the Conference Committee may also sit up and take note of what the CFTC did today. But don’t count on it. The movie industry has been working hard to ensure that the ban takes effect, irregardless of CFTC action. I guess it’s time to hurry up and wait again . . . this time for the United States Congress.
Update #1: Trend Exchange CEO Comes Out Swinging Against MPAA After CFTC Approval
Further background on CFTC approval and what lies ahead:
Media Derivatives Gets Go-Ahead for Movie Futures Trading
Box Office Futures Bid Approved For Media Derivatives, Only Congress Stands In Its Way
Meet The 43 Senate And House Members Who Will Decide The Fate Of Movie Box Office Futures
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Just to say fair play to Jabcat, who called the 3-2 decision (and named the correct individual commissioners) many weeks ago…