Cantor Futures Exchange L.P.

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The Cantor Futures Exchange L.P.
CantorExchange.png
Headquarters New York
Key People Howard W. Lutnick, CEO
Website www.CantorExchange.com

The Cantor Futures Exchange, L.P. or The Cantor Exchange is one of the first exchanges that planned to launch derivatives contracts based on motion pictures. The exchange is owned and operated by Cantor Fitzgerald.

In June of 2010, Cantor Fitzgerald won regulatory approval to trade in box-office futures but instead decided to end its effort because of a likely government ban on such trading.[1]

History

The Cantor Futures Exchange is an outgrowth of The Hollywood Stock Exchange, a fantasy trading venue that launched in 1996 and Cantor Fitzgerald bought in 2001.[2]

The Cantor Futures Exchange, L.P. received regulatory approval from the Commodity Futures Trading Commission (CFTC) on Apr. 21, 2010 to operate as a designated contract market.[3]

The CFTC also approved the Cantor Clearinghouse, L.P. ("Cantor Clearinghouse"), a sister company of the Cantor Futures Exchange on Apr. 21, 2010 to settle all trades between buyers and sellers and to ensure the integrity of the marketplace.

Products and Services

The exchange had hoped to offer Domestic Box Office Receipt contracts, also known as Movie Box Office Contracts or DBOR Movie Futures. The exchange would let people bet, with a minimum of $50, against other participants on whether certain movies will do better or worse than expected.[4] As of late April of 2010, Cantor was still awaiting CFTC approval on the contracts.[5]

The Motion Picture Association of American (MPAA) has vehemently opposed the idea of movie exchange. They have argued that it would bring about insider trading as well as tarnish the reputation and integrity of the movie business.[6]

Key People

Resources

References

  1. Cantor Fitzgerald abandons plan to trade box-office futures contracts. Los Angeles Times.
  2. Product Profile: Movie Futures. Futures Industry Magazine.
  3. CFTC Approves Cantor Futures Exchange, L.P. and Cantor Clearinghouse, L.P.. CFTC Website.
  4. Some investors put money into movies. USA Today.
  5. Press Release. CFTC.
  6. Movie Trade Group Objects to Futures Exchange. Wall Street Journal.