Cantor Exchange received approval for its exchange and clearinghouse applications from the CFTC in late April 2010.
EXPANDING THE BREADTH Cantor Exchange President Richard Jaycobs told a congressional hearing on box office futures that, "The goal of Cantor Exchange has always been to assist the motion picture industry by expanding the breadth and depth of financing sources available to the industry.
In 2001, Cantor Exchange bought the Hollywood Stock Exchange (HSX.com), an online box-office market that uses imaginary money (called Hollywood dollars or H$), with the intention of turning it into a real market exchange.
However, the Veriana exchange is open only to institutional investors, while the Cantor exchange would be open to anyone.
"The number of people who visit movie theaters each year and form opinions about a film's success is in the tens of millions," Cantor Exchange
president Richard Jacobs said in a statement.
The Commodity Futures Trading Commission is expected next week to give the greenlight to the Trend Exchange, created by Media Derivatives' Robert Swagger, while the Cantor Exchange, owned by the Hollywood Stock Exchange's Cantor Fitzgerald and run by Andy Wing, will bow at the end of April.
Wing is adamant that the Cantor Exchange is strictly sticking to movies for the time being--properties whose proof of success can be clearly proved with box office results.
The Cantor Exchange, which hopes to bow April 22, once approved by the CFTC, will launch with 40 films, starting with April 23's "The Losers." Tentpoles like "Iron Man 2," "Robin Hood," "Shrek Forever After," "Prince of Persia: The Sands of Time," "The A-Team," "Toy Story 3," "The Twilight Saga: Eclipse," "Sex and the City 2" and "Harry Potter and the Deathly Hallows: Part I" are also on the list, which ends with "The Chronicles of Narnia: The Voyage of the Dawn Treader" on Dec.
A decision on the other proposal, Cantor Fitzgerald LP's Cantor Exchange, is expected around April 20.
But while that market trades on "Hollywood Dollars," those using Cantor Exchange would use real currency to bet on a movie's prospects.
Having said that, we'll be buying "contracts" on the Cantor Exchange
and playing with real money.