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On April 20th America's Commodity Futures Trading Commission (CFTC) approved the second of two exchanges that would allow trading of contracts based on films' box-office takings.It is an answer to a real problem.
The potential problem for Citigroup and Bank of America is mitigated by the fact that much of their trading of contracts - bets on changes in interest rates, currency values and the like - is done through higher-rated subsidiaries.
After 112 years of face-to-face trading in London commodities markets, open-outcry trading of contracts in goods like coffee, cocoa and potatoes came to an end on the London International Financial and Options Futures Exchange.
In Illinois, Representative Rod R. Blagojevich defeated State Attorney General Jim Ryan, whose campaign was hampered by association with the Republican incumbent, George Ryan, leaving office under a cloud of scandal involving the trading of contracts and driver's licenses for campaign contributions.
Even trading of contracts in energy markets was not disrupted.
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Another traditional haven — gold — reached a record of $1,923.70 an ounce in trading Tuesday of contracts for December delivery, before retreating below $1,900.
Reform of derivatives markets will probably push a lot of the trading of bespoke contracts out into the open, where standardised contracts will offer thinner margins.
In early February, as contract prices reached a peak, Dutch authorities stepped in and halted the trading of these contracts.
Included in that bill is language that would outlaw the trading of future contracts based on box-office receipts.
It is based on the Nymex Access system, which the exchange uses for after-hours trading of its contracts.
The government of India is so sure that speculation makes commodities dearer that it has banned the trading of futures contracts for some of them (although not oil).
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