Thursday, July 1, 2010

Movie Futures Update

I got very excited a couple of weeks ago when I heard that Cantor Fitzgerald had received regulatory approval from the CFTC to go ahead with their plans to create movie futures (which would trade on expected box office receipts). Now, it appears they are dropping their plans because the new financial overhaul bill will apparently scotch the idea for good. The film lobby – which hated the idea - got to Washington lawmakers. By “got to,” I mean bribed with campaign donations.

As you know, I am an avowed prediction markets enthusiast, so I find this highly disappointing. One also wonders what this is doing in a bill that is supposed to correct what’s wrong in the financial industry. After all, movie futures don’t exist, so why is there a need to “fix” them. Welcome to Washington, where every leviathan-like bill is an opportunity to take care of one’s friends.

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