Cantor Fitzgerald gets approval on movie futures trading
Second company wins OK from federal regulators, but more approvals still needed.
The second of two financial companies looking to establish futures trading based on domestic box office performance of movies received regulatory approval Tuesday to set up a market.
The ruling from the Commodities Futures Trading Commission sanctions Cantor Fitzgerald to create the infrastructure for movie-futures trading.
Similar approval was given Friday to Chicago-based Media Derivatives.
Both companies still must gain approval for the actual financial products (aka "contracts") that will enable trading on this exchange -- and that is far from a given at this point.
Both companies face staunch opposition from a powerful Hollywood lobby, which is led by the Motion Picture Association of America and backed by numerous members of the House and Senate.
Using almost identical language for the caveat it gave Media Derivatives, the CFTC warned Cantor Fitzgerald that any financial contracts ultimately approved for the just-OK'd exchange will be subject to tighter restrictions than, say, oil futures would.
Read more at TheWrap.
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The Federal Reserve and Congressional politics threaten to rain on the market party.
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