Domestic Box Office Receipt (DBOR) Futures Contracts
Definition of 'Domestic Box Office Receipt (DBOR) Futures Contracts'Futures contracts based on movie receipts at the box-office. Domestic Box Office Receipt (DBOR) Contract Futures received approval from the Commodity Futures Trading Commission on June 15, 2010, with the trading of these contracts permitted on two exchanges, the Cantor Exchange and the Trend Exchange. However, Congress enacted legislation just a month later banning box-office receipts as the basis of any futures contract. |
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Investopedia explains 'Domestic Box Office Receipt (DBOR) Futures Contracts'While the Cantor Exchange has postponed the trading of box-office receipt contracts indefinitely as a consequence of the ban, the DBOR futures contracts envisaged by it entailed cash settlement, based on the sum of daily box-office receipts in the United States and Canada during the first four weeks after a film's initial release.The concept of DBOR futures contracts had already run into resistance from a number of parties including major movie studios, theater owners and the Motion Picture Association of America, on the grounds that the instruments could be susceptible to insider trading and manipulation. |
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