Summary

An important mission of Cantor Exchange is to facilitate the financing of new film projects. Domestic Box Office Receipt (DBOR) Contracts, if the exchange's application is approved by the CFTC, will provide a new vehicle to link investors of all catagories with film finance professionals and film production companies.

Unlike many other film finance vehicles, DBOR Contracts will be low cost, require a relatively low investment, will offer complete transparency, and will be publicly traded in a fully regulated environment. These features should make it easier for a new class of film investor to enter the market.

Moreover, since DBOR contracts will make it possible to estimate the future box office potential of a film project many months in advance, film financiers will no longer need to rely on conservative internal estimates of box office potential. Instead, film financiers could use DBOR contracts to lock in the level of box office revenue provided by the market months before a film is released.

Ultimately, as the DBOR market matures, Cantor Exchange expects that DBOR contracts will provide a direct link in the financing of new film projects. Production companies will be able to come to the exchange and, if their projects meet the minimum listing standards, see the value that the market applies to their projects as part of an Initial Contract Offering.


Experts and Financiers Speak Out on the Benefits of Box Office Futures
Several film financiers and film industry experts contend that Box Office Futures would be a sound financial instrument and would serve a useful purpose for film financiers and others who need to hedge their risk.

Lionsgate/Burns Letter in Support of Box Office Futures (PDF)
A letter to the House Committee on Agriculture describing how Box Office Futures would help Lionsgate and the rest of the motion picture industry.
Michael Burns
Vice Chairman, Lionsgate Entertainment

Potamkin Letter to CFTC in Support of Box Office Futures (PDF)
A letter describing how Box Office Futures would help ancillary entities and industries hedge their existing film-related risk.
Buzz Potamkin
Principle, Project X, Inc. (animation, marketing, and advertising firm)
Former Executive Vice President, Hanna-Barbera Cartoons
Former Executive Producer, The Walt Disney Company

Vantage Advisors Letter in Support of Box Office Futures (PDF)
A letter describing how Box Office Futures would help motivate film investors.
Tom Ashton
CEO, Vantage Advisor Group

Poltermann Letter in Support of Box Office Futures (PDF)
A letter describing how Box Office Futures will help independent film makers and the film industry at large.
Barry Poltermann
Independent Film Maker
Editor/Co-Producer, "American Movie"

Moore Testimony in Support of Box Office Futures for Congressional Hearing (PDF - 3,537 KB)
Written testimony presented to the House Committee on Agriculture's Subcommittee on General Farm Commodities and Risk Management (April 22, 2010) describing how Box Office Futures would help the film industry.
Schuyler Moore
Adjunct Professor, University of California at Los Angeles
Lawyer, Stroock & Stroock & Lavan LLP

Shiller Letter in Support of Box Office Futures (PDF)
A letter describing how Box Office Futures would help the film industry.
Robert Shiller
Professor, Yale University

Pagano White Paper in Support of Box Office Futures (PDF)
A white paper about the effects of Box Office Futures on the film industry.
Michael Pagano
Professor, Villanova University

Chance Summary Statement in Support of Box Office Futures (PDF)
A summary statement about Box Office Futures and the contract application of Cantor Exchange.
Don Chance
Professor, Louisiana State University

Plott Letter in Support of Box Office Futures (PDF)
A statement (in letter form) about Box Office Futures and the contract application of Cantor Exchange.
Charles Plott
Professor, California Institute of Technology

Rutledge Letter in Support of Box Office Futures (PDF)
An analysis letter about the advantages of Box Office Futures.
Ann Rutledge
Financial Consultant
Adjunct Assistant Professor, Hong Kong University of Science and Technology