DEFINITION of 'Cantor Futures Exchange'

An electronic, online marketplace where investors can buy and sell domestic (U.S.) box office receipt contracts, also known as DBOR contracts or movie futures. The exchange, approved by the U.S. Commodity Futures Trading Commission in April, 2010, allows investors to bet on how financially successful upcoming movie releases will be in theatres. The Cantor Exchange is similar to the Hollywood Stock Exchange (HSX) except that investors gain and lose real money. The exchange gets its name from its parent company, Cantor Fitzgerald, which also owns HSX.

BREAKING DOWN 'Cantor Futures Exchange'

The Motion Picture Association of America, the Directors Guild of America and other major industry groups opposed the exchange, saying it created a risk of market manipulation and conflicts of interest. Supporters said it could help companies in the movie industry manage movie-production risk by hedging.



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RELATED FAQS
  1. What types of futures contracts are typically sold on an exchange?

    Explore the wide variety of available futures contracts traded on exchanges, which range from agricultural commodities to ... Read Answer >>
  2. What do the S&P, Dow and Nasdaq futures contracts represent?

    Every morning before North American stock exchanges begin trading, TV programs and websites providing financial information ... Read Answer >>
  3. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ... Read Answer >>
  4. How can I calculate the notional value of a futures contract?

    Learn how the notional value of a futures contract is calculated, and how futures are different from stock since they have ... Read Answer >>
  5. How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between ... Read Answer >>
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    Learn what items futures may be purchased for, what a futures contract is and discover how the futures markets have greatly ... Read Answer >>
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