The purpose of this hearing is to provide the Commission with additional information related to pending contract approval requests submitted by two separate exchanges -- Media Derivatives Inc., which I’ll refer to as MDEX, and Cantor Futures Exchange. The settlement prices of the contracts submitted for approval are based on the level of box office receipts from theaters for particular movies (the contracts are often referred to as “movie futures” or “box office receipt futures”).
The Commission recently approved the contract market designation applications for these two exchanges. Staff found that the applicants met the CEA requirements applicable to operating as a designated contract market, and recommended to the Commission that the applicants’ request be approved. The Commission approved the designation of MDEX on April 16, 2010. Cantor was designated on April 20, 2010.
The Designation Orders for both MDEX and Cantor require them to submit to the Commission for prior approval any new class or category of media-related products before listing them for trading. In conditioning these designations, the Commission recognized that media contracts may require special review to ensure, among other things, that they are consistent with the Act and the Commission’s regulations, considering the unique nature of these contracts.
Click here for full details.