Cantor Futures Exchange

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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. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  4. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  5. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>
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    The primary risks associated with trading derivatives are market, counterparty, liquidity and interconnection risks. Derivatives ... Read Full Answer >>

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