A Futures Market For Betting On Movies

Cantor Futures Exchange, a subsidiary of Cantor Fitzgerald, is opening an online futures market site that will allow the general public and movie studios alike to place bets and trade on the box office revenues of movies.

The New York Times explains how the market will work:

In the real market, contracts on the Cantor exchange will trade at $1 for every $1 million a movie is expected to bring in — a figure determined by traders — at the domestic box office during its first few weeks in theaters. So if “Robin Hood” is expected to bring in $100 million in its opening weeks, a single contract could be bought for $100 by a trader who thinks Russell Crowe’s role in the movie will drive sales far above expectations. If that trader guesses right, and the movie sells $150 million in tickets, the trader makes $50.

Cantor is waiting for the regulatory approval from the Commodity Futures Trading Commission, after which it intends to open the exchange.

New York Times: “A Place to Bet Real Money on Movies”

[via Gawker]