Cantor speculates on box office entertainment

Cantor Fitzgerald has filed an application with regulators to launch an exchange that will allow users to hedge and speculate on the financial performance of movies.

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Cantor speculates on box office entertainment

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Cantor says that subject to approval from the Commodity Futures Trading Commission (CFTC), its exchange's first traded product will be "Domestic Box Office Receipt" contracts.

The contracts - expected to be listed in the first quarter of 2009 - will offer film finance professionals and traders an opportunity to hedge and speculate on the ticket sales of major film titles.

Howard Lutnick, chairman and CEO, Cantor Fitzgerald, says: "The Cantor Exchange and our intention to list Domestic Box Office Receipt contracts reflect our continuing commitment to innovation in the finance and entertainment sectors."

Cantor Fitzgerald already owns and operates the Hollywood Stock Exchange virtual entertainment stock market.

Separately, WeSeed, a new online community Web site for stock market investors dubbed "Facebook-meets-Amazon", has been launched in the US.

The site lets users get information and ideas on buying stocks through a propriety search tool as well as from "celebrity experts" and fellow members. In addition, users can practice investing in a virtual environment.

Jennifer Openshaw, president and co-founder, WeSeed, says: "By leveraging the power of community, the 100 million Americans who don't currently invest can learn the basic fundamentals of stock investing and become smarter, more confident, better informed and even more competitive in their jobs."

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Comments: (3)

A Finextra member 

It would be better if punters took their money down to the betting shop and placed it on the nags.  What would the prospectus look like...

"I really think we're going to slay them" said Baz Luhrman!

"It's really hot!" - News of the World

Give us a break.  Let's put some credibility back into the market and tell Mr Fitzgerald that there are enough shonky securities already.  We want to see value and growth...not a Yellow Submarine.

Paul Penrose

Paul Penrose Head of Research at Finextra

Cantor's not the only financial firm with stars in its eyes. Arch-rival Icap is apparently set to become a major player in Hollywood through the acquisition of independent film distributor Moving Pictures. Maybe they've decided there's no future in financial markets anymore.

Stanley Epstein

Stanley Epstein Associate at Citadel Advantage Group

I read this and then I checked the date. As it's not April 1st it really must be true! I am just flabbergasted!

On reflection though, anyone want to join me in setting up "Bank Bankruptcy" contracts? This will be an exchange that will allow users to hedge and speculate on the potential bankruptcy of banks and other financial institutions. This could be a real winner.

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