“-Technically, you can trade anything, because wherever there is a financial interest, there can be a market,”- said Andre Julian, chief financial officer of Option Investments Inc., an Irvine, Calif.-based independent broker for futures and options traders.
“-People love stats, and movies are something people understand, which is why it could bring some regular people into the futures markets for the first time,”- he said. “-Of course, it might be more difficult if it was launched in the middle of a bull market, when there would be no reason to look beyond stocks.”-
With a $50 trading minimum, the movie futures exchange clearly is hoping to attract a segment of retail-class investors and movie junkies, but once developed, the exchange could also become a vehicle to allow movie moguls to hedge their investments.
“-If it costs a studio $200 million to make a movie, that studio could use this exchange to protect its investment by going short the same amount, and then if they’-re losing money on the open market, they could make it back on the short side,”- Mr. Julian said. “-It all comes down to money, and there’-s always somebody on the opposite side willing to make a trade.”-
Best wishes to Richard Jaycobs.