Wall Street Approves Cantor Exchange's Plan For Bets On The Box Office

Sorry, Hollywood but Wall Street is way too excited to start betting on whether or not Wall Street 2: Money Never Sleeps will be a hit.

Predictably, the Commodity Futures Trading Commission just approved Cantor Exchange‘s proposal to sell futures contracts based on movie releases’ projected success, according to Deadline Hollywood.

The organisation also approved a similar proposal from Media Derivatives late last week.

Since the Exchange’s conception, Hollywood studios under the MPAA attempted to squash the project, which it views as a “risky online-wagering service that would be detrimental to the motion picture industry,” MPAA spokesman Howard S. Gantman said in a statement.

The Association’s most recent move to block the Hollywood Exchange is a Democrat-backed bill that will be reviewed by the Senate Agricultural Committee tomorrow. 

According to the LA Times, if it passes, the bill will ban the proposals the CFTC just approved.

The Exchange — which will allow anyone to trade on the film industry under Cantor’s proposal — comes at a particularly rough period in Hollywood. Box office tickets and DVDs sales continue to dwindle, which is forcing studios to cut costs and actors to take pay cuts.

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