Domestic Box Office Receipt (DBOR) Futures Contracts

AAA

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.

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.

RELATED TERMS
  1. Hollywood Stock Exchange - HSX

    An online prediction market where "investors" bet on the performance ...
  2. Cantor Futures Exchange

    An electronic, online marketplace where investors can buy and ...
  3. Futures

    A financial contract obligating the buyer to purchase an asset ...
  4. Commodity Futures Trading Commission ...

    An independent U.S. federal agency established by the Commodity ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
Related Articles
  1. Professionals

    Financial Careers According To Hollywood

    Find out if classic films about Wall Street reflect what it's actually like to work there.
  2. Options & Futures

    Intro To Open Interest In The Futures Market

    Applied primarily to the futures market, this indicator confirms trends and reversals.
  3. Options & Futures

    An Introduction To Managed Futures

    Their inverse correlation with stocks and bonds make these alternative investments worth getting to know.
  4. Options & Futures

    Interpreting Volume For The Futures Market

    Learn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.
  5. Active Trading

    Invest In Hollywood With The Film Futures Market

    It's been 10 years in the making, but you can now bet on which movies will hit it big, or which will flop.
  6. Options & Futures

    Options On Futures: A World Of Potential Profit

    There's one simple hurdle in the transition from stock to futures options: learning about product specifications.
  7. Options & Futures

    Examples Of Exchange-Traded Derivatives

    We look at some of the most common exchange-traded derivatives.
  8. Options & Futures

    Advantages Of Trading Futures Over Stocks

    We look at the top eight advantages of trading futures over stocks.
  9. Options & Futures

    Why Trading Coffee Futures Is A Zero Sum Game

    Coffee futures trading is as close to a zero-sum game as you might find in investing. We look at the risks and rewards.
  10. Options & Futures

    Avoid Future Shock By Protecting Your Portfolio With Futures

    Worried about protecting your portfolio of diversified stocks and assets? Using futures with correct strategies can help.

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center