Futures brokers and commodities traders looking to place a bet on the success or failure of specific movies will have to wait another week to find out the fate of the proposed box office futures contracts, according to the LA Times and other news sources.
The Commodity Trading Futures Commission (CTFC) has been considering a proposal by Media Derivatives, Inc. to create a market in box office futures, allowing brokers and traders to bet on the box office revenues of Hollywood releases.
The implementation of such a market is opposed by the Motion Picture Association of America (MPAA), who have lobbied in the Capitol, unsuccessfully so far, for Congress to limit or eliminate such a market.
The MPAA was dealt a serious setback two months ago, when the CTFC said that Media Derivatives had the right to create a box-offices futures market. At the time, regulators did not give the company the right to write specific box office futures contracts, which they were expected to rule on this week.
News sources report that it was Media Derivatives which requested and was granted the extension of the review period by one week.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.