CFTC approves box office futures trading by Media Derivatives

MUMBAI: The Commodity Futures Trading Commission (CFTC) approved a proposal from Media Derivatives to be the first company to trade futures on motion pictures.

CFTC found the terms and conditions of the proposed Weekend Motion Picture Revenue futures and options contracts submitted by Media Derivatives, Inc. (MDEX), do not violate the Commodity Exchange Act or the Commission’s Regulations there under.

The movie futures consist of a binary call option contract on Opening Weekend Motion Picture Revenues for Sony Pictures’ Takers, which is due to release on 20 August.

The contracts are intended to allow participants in the motion picture industry to manage the financial risks associated with the production and distribution of motion pictures.

CFTC is expected to decide the Cantor Exchange’s application later this month.