Film futures markets to start soon

2 hours 20 mins ago If start-up media and derivatives broker, Cantor Fitzgerald have their way, investors may soon be able to Paris on the box-office-space shows the summer blockbuster "Iron Man 2". Skip related content compete Derivatives Media, a division of Cantor verían networks and to build the first trade with the United States to offer futures on revenue of films at the box office. Although the concept about a decade has been launched, they say that they are objective in their reporting of investments in the vicinity - and speculation - tools for investors and studios of the hat to the volatile nature of the hearing and the volatility of box office. "This is the place at the right time and the right to build on a rotating basis," said CEO Robert verían swagger. While other future start-ups have changed greatly trying to wrest market share from the market for existing, "he said, Trend Exchange has a better chance of success because it is a whole new market. The assault on futures would offer Hollywood studios, facilitate pain from a box-office flop. The latest plans Come As a global box office grew to nearly 30 billion U.S. dollars last year. Hollywood studios often bring partners to invest their films and to minimize their risks. A futures market is likely to producers with other protective measures. Media Derivatives Exchange Trend in Scottsdale, Arizona, it is expected that the approval of the Commodity Futures Trading Commission on 24 March received and plans to trade for mid-year Swagger said in an interview Wednesday at the sidelines of the annual Futures Industry Association meeting in Boca Raton, Florida. verían plans aim to institutional investors. Cantor Fitzgerald has a statutory funding of a startup accounts on 15 March and plans to begin trading seven days a week 20 April, said President Cantor Exchange Jaycobs rich at the conference. As an example of how this would work if the box office receipts of a film is expected to 170 million U.S. dollars (113.6 million) pounds, an investor could buy a futures contract for $ 170 and if the movie was better than expected could sell at a higher price, "said Cantor. EAGE R "investors" ; The idea of creating a futures market in Hollywood has been at least a decade. In 1996 a website called The Hollywood Stock Exchange was launched, where participants could invest on counterfeit euro at the box office. A division of Cantor Fitzgerald bought the land in 2001. At the time, said a source Cantor, the introduction of futures contracts Cinema has worked. At the end of 2008, the company announced plans to list contracts will receive cash in the Cantor Exchange in the first quarter of 2009 - but the plans were postponed. This is partly because more and the approval of the U.S. government for the regulators a futures market box-office was a challenge. The United States and Canada box office top 10 billion U.S. dollars for the first time in 2009. News Corp. studio Twentieth Century Fox Film 3-D "Avatar" has made a world's record loss of 2.6 billion U.S. dollars. The Walt Disney Co's "Alice in Wonderland," even in 3-D Fighting "Avatar" opening figures of $ 116 million from Friday to Sunday. But as DVD sales - an industry that had already supported the industry - by 13 percent, the Hollywood studios declined by 12 per cent fewer films in 2009 than in 2008. At least part of the decline of American film is due to the contraction of loans by the financial crisis. The availability of futures contracts to hedge the risk might encourage donors to reverse this trend, "said Swagger. TRENDEX is by Minneapolis Grain Exchange, with a clear structure of the traditional concept of exchange," he said. Cantor Will Self-clear account of the pre-funded. While the film industry is small compared to other markets in commodity futures, with the exchanges in such a small area could benefit both, as traders seek to benefit all price differences between the two markets, "said Jaycobs. Trend Exchange has no information about the contracts, which intends to propose. Cantor plans to award contracts in a millionth of a film provide aggregate value of cash in taking four weeks, which they much more accessible to a dealer for a typical futures contract. (Editing by Edwin Chan and Gary Hill makes)