|The Cantor Futures Exchange L.P.|
|Key People||Howard W. Lutnick, CEO|
The Cantor Futures Exchange, L.P. or The Cantor Exchange is one of the first exchanges planning to launch derivatives contracts based on motion pictures. 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. The exchange is owned and operated by Cantor Fitzgerald.
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. All participants in the exchange, once approved, will automatically become participants in Cantor Clearinghouse upon funding of their accounts.
Products and Services
The exchange hopes 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. As of late April of 2010, Cantor was still awaiting CFTC approval on the contracts.
The Motion Picture Association of American (MPAA) has vehemently opposed the idea of movie exchange. They believe it will bring about insider trading as well as tarnish the reputation and integrity of the movie business.
- CFTC Approves Cantor Futures Exchange, L.P. and Cantor Clearinghouse, L.P.. CFTC Website.
- Product Profile: Movie Futures. Futures Industry Magazine.
- Some investors put money into movies. USA Today.
- Press Release. CFTC.
- Movie Trade Group Objects to Futures Exchange. Wall Street Journal.