[1] In the United States the idea of a futures trading in relation to the success of Hollywood films dates back at least to 1996, when Max Keiser and Michael R. Burns launched Hollywood Stock Exchange (HSX) as a web-based, multiplayer game in which players use simulated money to buy and sell "shares" of actors, directors, upcoming films, and film-related options.
[2][3][4] In 2007, Arizona-based entrepreneur Robert Swagger formed Media Derivatives Inc. (MDEX) with the goal of creating an electronic futures exchange for contracts based on box office results.
[6] Despite initially obtaining approval from the U.S. Commodity Futures Trading Commission (CFTC),[7][8] in July 2010, the U.S. Senate passed financial-regulatory legislation which included a provision banning the proposed practice.
Lobbying by the film industry and anxiety caused by the global financial crisis are seen as the main factors behind the decision to ban box office futures.
It can do so because it is granted a no-action letter by the CFTC due to its academic focus and the small sums that are involved, with the markets being run for educational and research purposes.