The movie studios are celebrating a ban on box-office futures trading that was included in the final financial reform legislation.
The Motion Picture Association of America has been aggressively lobbying Congress, saying that the futures contracts are akin to gambling and could do major damage to the movie industry.
Bob Pisano, Interim CEO and President of the MPAA, speaking on behalf of the Directors Guild, the National Association of Theater Owners, and the Independent Film alliance among others, issued a statement praising the ban: “We are heartened by the Conference Committee’s actions and look forward to the full House and Senate approving the legislation.”
But earlier this month the Commodities Futures Trading Commission approved the contracts based on box office results proposed by Media Derivatives(aka Variana/Trend Exchange). And on Monday the CFTC was expected to issue similar approval of Cantor Exchange's proposed box office derivative contracts.