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.



RELATED TERMS
  1. Regional Stock Exchange

    A regional stock exchange is a place outside of a country's primary ...
  2. Futures

    A financial contract obligating the buyer to purchase an asset ...
  3. Cash Contract

    A cash contract is a financial arrangement that requires delivery ...
  4. Contract Market

    Any board of trade designated to trade a specific options or ...
  5. Limit Move

    The largest amount of change that the price of a commodity futures ...
  6. Selling Hedge

    A selling hedge refers to investment strategies involving contracted ...
Related Articles
  1. Managing Wealth

    Make Money On The Movies

    If you think you know which films will tank and which will soar, this new way to trade could be for you.
  2. Investing

    The 6 Most Successful Films of the 21st Century

    Discover which 21st century movie releases rank as the most profitable in terms of absolute worldwide gross and as percentages of the movies' budgets.
  3. Insights

    The Actual Top Grossing US Movies

    Blockbuster movie calculations don't include inflation. Find out what the real top grossing movies are.
  4. Investing

    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.
  5. Investing

    The Top 5 Small Cap Entertainment Stocks for 2016 (CKEC, RDI)

    Learn about these five small-cap entertainment stocks that deserve a spot in your portfolio for 2016. Take advantage of trends across the industry.
  6. Tech

    Top Grossing Sci-Fi Films Of All Time

    Science fiction movies are not just for nerds anymore. In fact, these films can be big money makers at the box office.
  7. Investing

    What Drives Summer Blockbuster Movie Profits?

    Moviegoers spent about $1 billion each of the months of May, June, July and August 2014. What is it that makes a summer blockbuster so profitable?
  8. Insights

    The 10 Must-Watch Movies For Finance Professionals

    Finance makes for great cinema; here are 10 of the best offerings by Hollywood on the subject.
  9. Insights

    5 Critically-Acclaimed Movies That Bombed At The Box Office

    Critics loved these films but not all audiences did. Most of these highly-praised films failed to make back their budgets.
RELATED FAQS
  1. How are futures used to hedge a position?

    Learn how futures contracts can be used to limit risk exposure. 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 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 >>
  4. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ... Read Answer >>
  5. How do the investment risks differ between options and futures?

    Learn what differences exist between futures and options contracts and how each can be used to hedge against investment risk ... Read Answer >>
Hot Definitions
  1. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  2. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  3. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  5. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center