U.S. regulators have approved the creation of a market for movie industry participants and speculators to trade on predicted box office receipts, despite its denouncement by Hollywood studios as “legalized gambling.”
But the decision announced Friday by the U.S. Commodity Futures Trading Commission doesn’t mean people can start trading right away on the Trend Exchange. The commission is still reviewing the kinds of contracts — essentially presales of a share of future box office receipts — that could be traded there.
It is also reviewing a proposal to create a second market called Cantor Exchange. That one would have lower investment requirements than Trend Exchange, making it more likely for movie fans and other amateurs to participate.
A ruling on the Cantor proposal is expected next week