A coalition of Hollywood players and politicians have joined forces to oppose two new electronic futures exchange for trading movie box office receipt contracts.
Media Derivatives and Cantor Fitzgerald have both applied to the Commodity Futures Trading Commission (CFTC) for approval to launch platforms in the next few months.
However, a coalition of entertainment industry players, including the Directors Guild of America and the Motion Picture Association of America (MPAA), which represents Hollywood film studios, have attacked the plans.
In a letter to the CFTC, the group says the planned exchanges "are based on faulty understanding of the film industry and create a risk of rampant speculation and financial irresponsibility at a time when the nation is still seeking to recover from an economic meltdown of the financial markets."
The coalition continues: "With Congress and the President working on reforming the financial markets to help curb the abusive practices that triggered our nation‟s economic crisis, now is not the time to open up new and highly speculative marketplaces that could end up costing jobs and harming legitimate businesses."
The National Association of Theatre Owners and the Independent Film and Television Alliance also signed the letter.
According to the New York Times, the industry players have gained support for their stance from California's two senators, Barbara Boxer and Dianne Feinstein, who have sent the commission a joint letter "urging caution" in approving the contracts.
A decision from the CFTC on both exchanges is expected in the next few weeks.