The U.S. Commodity Futures Trading Commission approved the idea of creating a futures market for the purpose of trading in forecast box-office receipts.
Dubbed the Trend Exchange, it would empower traders and those in the industry to make bets on whether the projected revenue of a movie would reach its estimates.
Veriana Ventures, which has been behind the push to approve of Trend Exchange, says it would be a valuable tool to allow those financing films to hedge their bets and protect themselves; they pointed out it would particularly help smaller studios who struggle to obtain financing.
There is another proposal out there from Cantor Fitzgerald LP for a similar exchange which would be named Cantor Exchange if approved. This would target those wanting to invest from the general public, as there would be lower investment requirements accompanying it. A ruling on that should come next week.
Hollywood is opposing the exchanges, saying they could easily be manipulated.
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There are already commodity funds and investor information sites that focus exclusively on these movie futures markets. For the fund, see: http://starsfund.ligadvisers.com and for investor info, see http://www.moviexschool.com
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