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April 2 on an application by Media Derivatives, Inc. (MDEX) to create a designated contract market for film futures.

The groups said that the proposal by MDEX and a separate plan by Cantor Futures Exchange, L.P. “are based on faulty understanding of the film industry and create a risk of rampant speculation and financial irresponsibility at a time when the nation is still seeking to recover from an economic meltdown of the financial markets.”

omments (23)

Furthermore, complaints about releasing data are laughable, because the data is already released, and a virtual trading system has existed for a 13 years without any problems (HSX). Cantor owns HSX, and HSX often predicts movie results more accurately than studio estimates, so the idea that these trading systems are designed around a faulty understanding of the movie industry is laughable. If anything, this is one of the most tested trading systems in the history of this country to ever go live. I cannot think of any other trading system we have that had 13 years of data on before people started trading it for real money.

I have worked in both industries as a futures trader and film producer. The people who criticize this practice don’t understand it. Futures markets where designed to reduce risk, starting with the grain markets a long time ago. If you could lock in a good price for grain and didn’t know what the future would be, but you knew what your costs were, you could lock in a profit while speculators could take on that risk. It’s a great idea for the film biz. There will be fewer box office disasters and more films greenlit because of the influx of investor dollars. Those who don’t want it are nervous that their accounting practices will be scrutinized and they SHOULD be nervous. I say bring this thing on!!

Both Cantor and Veriana say that their exchanges are intended to give Hollywood investors a way to mitigate their risks. If a distributor has second thoughts about a movie, the company could short it on the exchange.

Both Cantor and Veriana say that their exchanges are intended to give Hollywood investors a way to mitigate their risks. If a distributor has second thoughts about a movie, the company could short it on the exchange.

Both Cantor and Veriana say that their exchanges are intended to give Hollywood investors a way to mitigate their risks. If a distributor has second thoughts about a movie, the company could short it on the exchange.