American Association Of Independent Investors

American Association Of Independent Investors

American Association Of Independent Investors

A possible money-making ability to estimate which American movies will or will not succeed financially is now within reach. However, much of the U.S. motion picture industry itself remains adamantly opposed to the whole concept of movie futures trading.

A split Commodity Futures Trading Commission June 14, 2010 approved by 3-to-2 an application for one of two pending futures markets that would permit investors to trade in contracts linked to the box office revenues of films, similar to futures trading for commodities.

Two Potential Exchanges Pending for Movie Futures Trading

The vote will enable a new online platform -- Trend Exchange, operated by Veriana Networks of Scottsdale, Ariz., and launched by Chicago-based Media Derivatives, a division of Veriana -- to trade on future box-office receipts for movies. Similarly, the CFTC announced June 28 it had approved a bid by Cantor Exchange, owned by the Wall Street firm Cantor Fitzgerald, for investors to buy and sell a contract that predicts how well the movie "The Expendables" with Sylvester Stallone will do.