Monday, November 19, 2018


April 22, 2010 by · 2 Comments 

Just when it seemed likely that futures trading on the box office performance would become as commonplace as futures trading on corn and oil, a Senate committee has stepped in to prevent such trading from materializing. In a surprise action that was hailed by movie studios and exhibitors, the Senate Agriculture Committee — of all entities — voted to adopt an amendment to the Wall Street Transparency and Accountability Act that would bar futures trading on movie ticket sales. The Senate committee has regulatory oversight on the futures exchanges. The action comes as a blow to the global financial services company Cantor Fitzgerald and an Indiana start-up, Media Derivatives, who had received preliminary approval from the Commodities Future Trading Commission to create the box-office exchange, but its assent represented only a first-stage action, and some members of the commission have already indicated that they are skeptical of the proposed exchanges. The Senate bill still faces a lengthy legislative process before it winds up on President Obama’s desk.

  • moviegeek23

    Anyone who watched the House Agriculture Subcommittee meetings today will not be surprised at all to see that provision barring futures on movie ticket sales movie struck from the bill never to see daylight again.

    Quite a butt-kicking that the MPAA and NATO received at the hands of the committee and the exchanges proposing these new contracts. It was painfully obvious that the MPAA and NATO did not understand these markets, and their public stance against it was born from self-interest in maintaining their ownership of public disseminatioin of data around box office statistics.

  • moviegeek23

    Lincoln’s “added language” to the bill outlawing movie box office futures is only a result of heavy lobbying by the MPAA, and a result of Lincoln and the other senators who approved this language catering to the special interests that are filling their political coffers.

    There is already a federal regulatory agency, the CFTC, which is more than capable of evaluating the merits of these proposed products, and according to the federal regulatory statutes has until late June to rule on them.

    The language in this bill not only seeks to circumvent this review process by imposing a legislative ruling on these products, but also sends a CLEAR message that congress has no confidence in the CFTC to perform the regulatory functions that they are entrusted with through the Commodities Exchange Act (CEA).

    We should not be advocating a precedence that excludes one industry from benefitting from exchange-traded, centrally-cleared, federally-regulated futures instruments without allowing the agency entrusted to approve or disallow them to conduct their due diligence.