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.

BREAKING DOWN '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. Cantor Futures Exchange

    An electronic, online marketplace where investors can buy and ...
  2. Receipt

    A written acknowledgment that something of value has been transferred ...
  3. Warehouse Receipt

    A receipt used in futures markets to guarantee the quantity and ...
  4. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  5. Contract Size

    The deliverable quantity of commodities or financial instruments ...
  6. Limit Move

    The largest amount of change that the price of a commodity futures ...
Related Articles
  1. Personal Finance

    Betting On The Entertainment Industry

    Speculating on new flicks for profit is becoming an important component of Hollywood business.
  2. Term

    The Difference Between Forwards and Futures

    Both forward and futures contracts allow investors to buy or sell an asset at a specific time and price.
  3. Options & Futures

    20 Investments: Futures Contract

    What Is It? As the name implies, futures are contracts on commodities, currencies, and stock market indexes that attempt to predict the value of these securities at some date in the future. ...
  4. Budgeting

    Keeping Your Receipts

    When is it a good idea to keep receipts? Here are 6 good reasons why it's worth the trouble, tips on which ones to keep and easy ways to make it happen.
  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. Investing News

    The 8 Highest Grossing Movies of 2015

    Count down the most popular films at the American box office in 2015, and learn how much they earned in the domestic and worldwide markets.
  7. Options & Futures

    Beginner's Guide To Trading Futures: The Basic Structure of the Futures Market

    In this opening section, we will take a look at how the futures market works, how it differs from other markets and how the use of leverage impacts your investing. How Futures WorkYou are probably ...
  8. Options & Futures

    How to Trade Futures Contracts

    Futures is short for Futures Contracts, which are contracts between a buyer and seller of an asset who agree to exchange goods and money at a future date, but at a price and quantity determined ...
  9. Insurance

    Futures Fundamentals: Introduction

    A futures contract is a type of derivative instrument, or financial contract, in which two parties agree to transact a set of financial instruments or physical commodities for future delivery ...
  10. Active Trading Fundamentals

    How to Trade Dow Jones Future Contracts

    Learn about the Dow Jones Index futures contracts available and obtain step-by-step instruction on how to trade the stock index futures.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. What types of items can you buy futures for?

    Learn what items futures may be purchased for, what a futures contract is and discover how the futures markets have greatly ... Read Answer >>
  4. 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 >>
  5. What does a futures contract cost?

    Learn about values of futures contracts and the initial margin a trader must place in an account to open a futures position, ... Read Answer >>
  6. How do I set a strike price for a future?

    Find out why futures contracts don't have set strike prices like options or other derivatives, even though price change limits ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center