Movie Futures No Longer in Production – An Update
However, it looks like the current financial reform legislation has thrownrotten tomatoes at the plan. The LA Times reports:
With financial reform legislationthat would outlaw trading in box-office futures headed toward final passage,the company is giving up on its plans, said Richard Jaycobs, the executiveheading the effort for Cantor Fitzgerald.
“The broader opportunity ofmotion picture finance is still something we have to evaluate, but we know nowwe’re not going to do futures contracts,” he said. “The bill is quiteclear.”
Though the financial reform billisn’t yet law, its box-office futures provision was made retroactive to June 1by the House-Senate conference committee that hammered out final language forthe bill last week. That would put a stake into both Cantor Exchange and itsmain competitor, Media Derivatives, which received final approval from thecommission June 14.
Jaycobs said his firm was simplyoverwhelmed by the lobbying power of the Motion Picture Assn. of America, whichon behalf of the six major studios persuaded Sen. Blanche Lincoln (D-Ark.) toinsert a box-office-futures ban in her original version of the bill. Theassociation also got House-Senate negotiators last week to not only keep theprovision but also make it retroactive.
“I’ve really come to respectthe MPAA’s ability to be effective on [Capitol] Hill,” Jaycobs said.
The major studios and some othersin Hollywood had argued that box-office futures markets could create negativepublicity for movies before they’re released and would be too easy tomanipulate. Backers have said they would be a useful financial tool for filminvestors.
This is how a bill becomes 2000 pages.
[Meredith R. Miller — h/t Allen Blair (Hamline)]