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.