Industry groups come out against proposed box-office futures trading systems (LAT, TW, DH, THR)

By Nancy Tartaglione

The prospect of box-office betting isn't finding many takers - not within the industry at least. Recently, the proposed Cantor and Trend online futures trading systems (which are based on movie box-office performance) were likened to legalized gambling by the MPAA. Yesterday, several other industry groups came forth with similar complaints.

Among those coming out against the proposed markets are the Directors Guild of America, the Independent Film and Television Alliance, the International Alliance of Theatrical Stage Employees and the National Assn. of Theater Owners.

The groups, along with the MPAA, have asked the Commodity Futures Trading Commission to postpone a decision on an application by Trend owner Veriana to create a designated contract market for film futures.

"With Congress and the President working on reforming the financial markets to help curb the abusive practices that triggered our nation's economic crisis, now is not the time to open up new and highly speculative marketplaces that could end up costing jobs and harming legitimate businesses," the groups said.

Among specific concerns is that Trend is asking studios or distributors "to provide evidence to support its public boxoffice number when it falls outside the standard deviation level."

The letter doubted "whether any authority exists to require disclosure of any information from studios."

"We reached out to the MPAA earlier in the week and they said it was premature for us to be speaking," Cantor Exchange president Rich Jaycobs told TheWrap. "I don't understand how it can be premature, when they're already speaking to the regulator and making claims."

Jaycobs said he spoke with a CFTC rep on Wednesday afternoon, but isn't yet clear as to what affect the letter will have on Cantor's approval process.

"There's nothing the MPAA or anyone else has stated that hasn't already been discussed with the Commission after two diligent years of working together with them," he added.