New futures exchanges in Chicago and New York let investors wager on whether movies will be hits or flops.
A new futures exchange that will let investors bet on contracts tied to soon-to-be-released movies is making its home in Chicago.
Trend Exchange aims to open trading on the contract by midyear, allowing investors to wager on whether movies will be a hit or a flop based on box-office receipts.
Despite its Hollywood focus, the exchange put its operations and 22 employees in Chicago because of the expertise that has grown up around the city's other big exchanges. For instance they have recruited Patrick Catania, a 40-year Chicago Board of Trade veteran, to serve as a consultant.
He believes that the exchange might entice more capital to the film-making industry at a time when investors have become jittery about investing in movies.
The investors will be able to hold short or long positions and bet on between 12 and 16 movies in the weeks before the movies are released.
This is a totally new concept that regards to risk management.
I think this is a original and innovating new concept. That will bring big changes to the film industry. It will also bring a lot of money to the film industry because betting is easy and does not always deal with large amounts of money. So even a person with a little bit of money can bet and so invest in the movie business.
But the betting can also have a negative impact on the movies. People that bet can have or make a big influence on the popularity of the movie. In the end I think the impact will be more of a negative impact than a positive one.
This was based on following article: http://www.investmentnews.com/article/20100317/FREE/100319872
Liesbeth Masschelein
Trend Exchange aims to open trading on the contract by midyear, allowing investors to wager on whether movies will be a hit or a flop based on box-office receipts.
Despite its Hollywood focus, the exchange put its operations and 22 employees in Chicago because of the expertise that has grown up around the city's other big exchanges. For instance they have recruited Patrick Catania, a 40-year Chicago Board of Trade veteran, to serve as a consultant.
He believes that the exchange might entice more capital to the film-making industry at a time when investors have become jittery about investing in movies.
The investors will be able to hold short or long positions and bet on between 12 and 16 movies in the weeks before the movies are released.
This is a totally new concept that regards to risk management.
I think this is a original and innovating new concept. That will bring big changes to the film industry. It will also bring a lot of money to the film industry because betting is easy and does not always deal with large amounts of money. So even a person with a little bit of money can bet and so invest in the movie business.
But the betting can also have a negative impact on the movies. People that bet can have or make a big influence on the popularity of the movie. In the end I think the impact will be more of a negative impact than a positive one.
This was based on following article: http://www.investmentnews.com/article/20100317/FREE/100319872
Liesbeth Masschelein
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