Lee Terry in the News :: April 28, 2010

More Members of Congress Oppose Trading of Movie Box-Office Futures

Michael Cieply/New York Times

Political opposition to a pair of proposed exchanges that would trade
futures contracts keyed to the movie box office grew on Wednesday, as 10
members of the House of Representatives sent the Commodity Futures
Trading Commission a letter voicing concerns about the plans. The letter
urged the commission to move slowly in reviewing the proposals by Cantor
Fitzgerald and Veriana Networks while Congress considers legislation
that would ban the futures.

"We are also concerned that movie futures do not serve a public purpose,
and we encourage the Commission to take that aspect into consideration
before issuing a final decision," said the letter. It was signed by
Betsy Markey, Howard Berman, Jason Chaffetz, Debbie Halvorson, Walter B.
Jones, Bill Posey, George Radanovich, Tom Rooney, Adam Schiff and Lee
Terry. One concern, the representatives said, is that policing of the
new markets would draw resources away from agricultural commodities
markets.

The letter asked that the commission use a full review period, which has
been extended until June, in considering the plan. It also suggested
that the commission should notify Congress if it needs more authority to
bar trading that does not serve a clear public interest. Both Cantor and
Veriana have argued that the futures would allow the film industry to
hedge its risks, as is common in commodities-related businesses.