Second Hollywood trading site to launch

Trend Exchange requires brokers to place trades, unlike HSX

And then there were two — boxoffice trading exchanges, that is.

A couple of weeks after news came that the Hollywood Stock Exchange plans to launch April 20 as a real-money trading site comes word that a similar enterprise by Los Angeles-based Media Derivatives aims to begin operations after final regulatory approval is secured March 24.

The Trend Exchange differs from HSX’s planned Cantor Exchange in that the former requires brokers to place trades, while the public can use the latter directly. HSX is owned by New York investment firm Cantor Fitzgerald. Backers of both believe Hollywood will embrace their ventures as means of hedging film costs.

“Demand has significantly increased, in part due to the global economic crisis,” Trend Exchange CEO Robert Swagger said. “By offering speculators and hedgers a market-based solution to transfer the considerable financial risks associated with major movie productions, the Trend Exchange will perform the same public service that futures exchanges have been providing to commercial users for nearly 200 years.”

Said Clark Hallren, a Clear Scope Partners managing partner who is a Media Derivatives consultant on the project: “Trend Exchange is precisely what is needed to allow investors or operators to manage the complex risks of the entertainment industry. Applied prudently by sophisticated parties, the volatility of film performance could be more easily managed, thereby making the business more attractive to all parties.”

Media Derivatives is owned by the investment firm Veriana.
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