Just what we need: Split CFTC approves box-office futures
June 15, 2010
– Comments (8)
Fantastic. I was hoping this thing wouldn't pass, but it did. What a crazy bunch of crap.
http://news.yahoo.com/s/ap/20100615/ap_on_en_mo/us_cftc_betting_on_box_office
[excerpt]
Soon playing in a theater online: trading of future box-office receipts for movies on a new exchange, following approval by federal regulators. Unless, that is, Hollywood studios get their way and Senate legislation to ban the box-office futures becomes law.
A divided Commodity Futures Trading Commission on Monday approved the proposed futures contracts for the new Trend Exchange. That means the movie futures trading can proceed; it is expected to begin sometime in the third quarter. The first proposed contract for the exchange is for opening-weekend receipts for "Takers," being released Aug. 20. Matt Dillon plays a cop who takes on a team of expert bank robbers. Major movie studios strongly oppose the idea. They say rival studios could sabotage films by betting against them. In giving its approval, the CFTC said it found that box-office receipts fit the law's definition of a commodity, that the Trend Exchange contracts aren't "readily susceptible" to manipulation, and they provide a way of managing risk.
The agency's vote was 3-2. Two CFTC commissioners, Democrat Bart Chilton and Republican Jill Sommers, voted against approving the contracts for the Trend Exchange.
Nathan had this great rant regarding this here: http://economicedge.blogspot.com/2010/06/morning-update-market-thread-615.html
Crank of the day goes to the CFTC who approved, with a 3-2 vote, the creation of futures contracts based upon movie box-office receipts! Hollywood is furious, as they now see speculators shorting their films, LOL. It’s so funny I’d cry if it weren’t so disgusting. What it shows so clearly is how our current version of a “marketplace” is nothing but a gambling parlor – a joke. Oh wait, now movie studios can “hedge” their productions! Or better, an actor can take a lucrative contract, short the movie, and then produce a stinker, “throwing” the film for profit! LOL, what fun there is in a casino.
Hey, I’m thinking of creating a new family of ETFs… first I’ll create one for “Red,” and another for “Black.” Each morning I’ll spin the wheel to determine which one rises or falls, and in about three month’s time I plan on rolling out my 3X versions of my new ETF’s. Anyone want to “invest” in my new enterprise? It’s going to be big, I’ll follow the red and black ETFs with “heads” and “tails.”
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