Lawmakers negotiating causing financial-markets regulation weighing a ban on forward contracts pegged to box-office receipts and Hollywood Studios are working to ensure the prohibition contained in the final bill.
The Motion Picture Association of America, the largest trade association in the film industry is leading the push to ban these trading, giving investors the opportunity to bet on a film's revenue. The 14th June Commodity Futures Trading Commission approved the futures contract proposes the division of the Center Ventures LLC by granting preliminary approval in April to the one proposed for Cantor Fitzgerald LP.
Robert Pisano, interim chief of the MPAA's director, said the CFTC on 19 May be that future markets "will harm the motion picture industry." He called the contracts "free Standing bets" and said they would be "inherently subject to treatment" by investors seeking to influence the performance in the movie is.
The prohibition on the box-office transaction is included in a set of new rules that apply to most unregulated derivatives markets that House and Senate negotiators can agree today. The provision for non-future film was included in the package through the Senate Agriculture Committee Chai Woman Blanche Lincoln, of Arkansas Democrats.
