SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
And now the Chicago Board Options Exchange considers leaving Illinois

Friday, Sep 30, 2011

* First CME started shopping itself around, and now CBOE is looking at relocating

The parent of the Chicago Board Options Exchange has held talks with a number of governors and state officials about a possible move of its headquarters to another state after Illinois raised its tax rate, providing another challenge to the city’s status as the self-styled “derivatives capital of the world.”

January’s tax increase is seen increasing CBOE Holdings Inc.’s (CBOE) state tax bill by a quarter. Chicago-based CME Group Inc. (CME), the world’s largest futures exchange operator, is also talking about relocating its headquarters.

“We’ve had a series of meetings with people in this state and outside this state,” said Bill Brodsky, chairman and chief executive of CBOE, in an interview. “The bottom line is that we don’t want to leave Illinois, but the structure that exists as it relates to exchanges is virtually punitive.” […]

Chicago’s derivatives exchanges form the nucleus of a broader financial services sector that is also being hit by the tax rise, said Brodsky. The trading business is estimated to employ around 120,000 people in the city, and has expanded to fill the gap left by the decline of its manufacturing base. […]

“Our goal is to find a way that will remove the punitive aspects that will allow us not to move operations out,” Brodsky said. “Hopefully we will come to a solution, but if not we have many other alternatives.”

It may already be too late, but I really think we need to seriously consider repealing that corporate income tax hike.

- Posted by Rich Miller        


15 Comments
  1. - wordslinger - Friday, Sep 30, 11 @ 3:48 pm:

    Geez, what took them so long?

    –The trading business is estimated to employ around 120,000 people in the city, and has expanded to fill the gap left by the decline of its manufacturing base. […]–

    I’m not so sure about that, particularly the “expanding” part. I’ve been done around the exchanges for twenty years, and the Communications Revolution led to a lot of efficiencies that required fewer support staff.

    The assumption is that there have been fewer jobs, not more.


  2. - OneMan - Friday, Sep 30, 11 @ 3:49 pm:

    wordslinger … I guess I would argue there was been a huge growth in tech jobs in the sector over the last 10 years.


  3. - Responsa - Friday, Sep 30, 11 @ 4:02 pm:

    CBOE and CME are a big part of what makes Chicago both a world class city and an international city. Circumstances need to be such (and laws need to be changed where necessary) so they will stay. Rahm needs to exert pressure to fix this mighty business mess that Quinn has made.


  4. - Ahoy - Friday, Sep 30, 11 @ 4:08 pm:

    -It may already be too late, but I really think we need to seriously consider repealing that corporate income tax hike.-

    Agreed. It’s going to get too expensive not to.


  5. - Rich Miller - Friday, Sep 30, 11 @ 4:10 pm:

    Yeah. It’s like Illinois is now seeing its own version of “Going Galt.”

    Sigh.


  6. - Carl Nyberg - Friday, Sep 30, 11 @ 4:11 pm:

    Corporations have it pretty good in America.

    They should not take for granted all that has been done to rig the game in their favor.

    If corporations want to treat the citizenry as the enemy, they should remember that ultimately the people get to vote.

    Access to markets is not a given.


  7. - Rich Miller - Friday, Sep 30, 11 @ 4:12 pm:

    Carl, c’mon. First of all, if they leave, they won’t care what the people think. And if they stay and the public gets angry, what are they gonna do? Elect a Communist? Not gonna happen in this country.


  8. - walkinfool - Friday, Sep 30, 11 @ 4:14 pm:

    A step in the negotiations. I hope we can remove “the punitive aspects” perceived by CME and CBOE. They have received a lot of special benefits in the past from governmental units here, and likely will again. I doubt it will require a repeal of the whole tax hike to make it worth their while to stay in Illinois.


  9. - Responsa - Friday, Sep 30, 11 @ 4:15 pm:

    Rich, what is most unfortunate is that this reaction by business is completely rational and was totally predictable. It was, in fact, predicted by a number of commenters here on this very blog when the corporate income tax hike was being discussed.


  10. - Ryan from Carrollton - Friday, Sep 30, 11 @ 4:16 pm:

    Guess the Chamber of Commerce was right about businesses leaving.


  11. - Demoralized - Friday, Sep 30, 11 @ 4:23 pm:

    If we are going to have to end up bribing all of these corporations to stay in Illinois then what the heck is the point of the increased corporate income tax rate. We are just giving it all away anyway. Either repeal it or fix the state tax laws so that all of the corporations are paying what they owe. No deductions.


  12. - 1776 - Friday, Sep 30, 11 @ 4:39 pm:

    Lawmakers need to realize that ACTIONS have CONSEQUENCES. Too many legislators have never owned a business or had to meet a payroll and don’t have a freaking clue about the real world.


  13. - SAP - Friday, Sep 30, 11 @ 4:46 pm:

    Corporate piece is pretty small portion of the tax hike. Repealing most/all of that and leaving individual portion alone would remove justification for threats of corporate flight and “only” cost the state about a half a billion a year.


  14. - wordslinger - Monday, Oct 3, 11 @ 8:12 am:

    I’m a little confused about the exchanges reactions in one sense.

    Guys like Brodsky and Duffy are big-time players, big campaign contributors in Illinois government and politics. They don’t have any problems getting access to GA leadership, the governor, Senators, mayors, etc. They socialize with them at all the usual functions.

    Were they banging the drum back in the lame-duck session when this went through? I don’t recall anything publicly. They knew they were going to take a big hit. They didn’t start squawking until months after the fact.

    I’m wondering if deals were greased beforehand, as in, “keep quiet while we pass this, and you’ll get your break down the road.” But “let us ride in and save the day.”

    Were they


  15. - Raj - Monday, Oct 3, 11 @ 9:10 pm:

    if cboe and cbot are moving from chicago it would be big problem for city and it will be big mess for small business and job risk for every one i think state goverment needs to think so serios to keep jobs in illions


Sorry, comments for this post are now closed.


* Reader comments closed for the weekend
* CUB Poll: 84% Oppose Exelon Bailout - Solar Poll: 81% Oppose Demand Charges
* SUBSCRIBERS ONLY - New cable TV buys and fundraiser calendar
* Question of the day
* *** UPDATED x1 - Friends of the Parks responds *** Lucas pulls plug on museum
* "Dead. Yes, dead."
* Radogno shares some deets on stopgap, blames Chicago for holdup
* Maybe this will convince Democrats to cut a deal?
* Nobody's right if everybody's wrong
* Another way Chicago is behind the times
* More on that Cullerton meeting
* Creating a workaround for new CPS debt?
* Settlement talks in Duckworth case "initiated by the judge"
* Hostage dies
* Close on 6-month stopgap, not there yet on K-12
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Microsoft Surface 3 is on its way out, no replacement confirmed just yet
* A few more vivo X7 specs out thanks to TENAA listing
* Once again, 32GB Nexus 5X discounts steepen — this time below $250
* First-party Google smartphone could come aside from Nexus devices this year
* iPhone 7 metal casing has speakers, space oddity
* Want a Blue Coral Galaxy Note 7? Samsung files a trademark application for a color
* Is TCL producing BlackBerry Hamburg project?

* Less than 4 days left to cast your All-Star vote
* 5 reasons not to count out the White Sox
* Fulmer, Hawkins among top prospect performers Sunday
* Smooth sailing for Sale in MLB-best 13th win
* Sales pitch: Ventura calls ace best in the AL
* Smooth sailing for Sale in MLB-best 13th win
* Smooth sailing for Sale in MLB-best 13th win

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Editorial: Iowa: The end of the line - Quad Cit.....
* David M. Gerlach: College students are collater.....
* Andy Shaw: Quinn is back to shaking up politica.....
* Monday Letters: Rauner is driving faculty, stud.....
* ..


* $2B in Illinois road projects threatened by stalemate
* Economic woes cause drop in number of Illinois boaters
* Rauner signs ID law making Illinois comply with federal law
* Illinois police sue town, claim body cameras record nonstop
* Study: Rotting trees caused mysterious holes in huge dunes
* 1 dead, 1 injured after boats crash on Rock River
* US Rep. Duckworth settles workplace retaliation lawsuit
* Workplace retaliation lawsuit against Tammy Duckworth settled
* Chicago police arrest teen in slaying of city dispatcher
* Lucas abandons plan to build museum in Chicago after lawsuit

* Illinois women hit hard by state budget impasse
* Stalemate threatens $2B in road projects
* Economic woes cause drop in number of boaters
* Chicago school money seen as potential deal-killer
* Chicago school money seen as potential state budget deal-killer
* Survey: Nearly 1 million human service clients affected by budget impasse
* Illinois lawmakers to reconvene Wednesday as budget deadline nears
* Illinois State Museum given path to accreditation
* Illinois insurance co-op sues feds over health law payments
* Gun bill at Illinois Capitol gets support from Rifle Association

* Who's sitting in Chicago's cushiest board seats?
* The fall and rise of Chicago real estate in three acts
* At Chicago law firms, a salary war breaks out after years of deep freeze
* Why overbanked Chicago has even more banks
* One suburban manufacturer's answer to shortage of skilled workers


* Man shot in Marquette Park
* Woman found dead after Spring Grove crash
* Man shot while riding in car in Humboldt Park
* Chile wins Copa in penalty kicks; Messi says he is quitting
* Innovative program cuts violent-crime arrests among Chicago youth
* Georgia Nicols horoscopes for June 27, 2016
* Dear Abby: Keep dogs leashed to prevent dogfights
* At BET Awards, stars keep focus on Prince, politics
* Cops: Two shot by off-duty sheriff’s deputy in Marquette Park
* Hit ’em where they ain’t? Not working for Cubs’ Heyward so far


* Old East Aurora High School stadium to get rousing farewell party
* Shootings leave 7 injured on South, West, Northwest sides
* Market volatility continues as investors digest Brexit vote's implications
* Messi says he is quitting Argentina's national team after loss to Chile in Copa final
* 10 stabbed, beaten at neo-Nazi nationalist rally in California
* BET Awards full of Prince tributes and political moments
* The game of thronesiest episode yet: 5 thoughts recapping the 'Game of Thrones' season 6 finale
* 2 shot by Cook County sheriff's deputy in Marquette Park
* British political turmoil deepens after EU referendum
* How Jason Benetti landed in the booth calling White Sox games


* David M. Gerlach: College students are collateral damage in Illinois politics
* Illinois women hit hard by state budget impasse
* Stalemate threatens $2B in road projects
* Economic woes cause drop in number of boaters
* Chicago school money seen as potential deal-killer
* Chicago school money seen as potential state budget deal-killer
* Angie Muhs: The threshold for national news on our front page
* Their View: Separation of powers prevails
* Statehouse Insider: Lawmakers coming back to Springfield? We're saved
* Bernard Schoenburg: Davis opposes school bathroom transgender rules from DC


* UPDATE: 1 dead in accident on I-74 near Mahomet
* Uni High's Rajic shooting for Olympic moment
* UI hoops recruit glance: Jordan Goodwin
* Coaches' corner: Illinois' Kevin Hambly
* June 30 Ask the Sports Editor chat
* June 30 prep sports chat
* June 27 Bob Asmussen chat
* Vietnam Wall Closing Day
* Accidents clog I-74 near Mahomet
* College football extra: 2016's top 10 running backs


* Spain conservatives win vote but face problems to form govt
* Fire crews making inroads against deadly California wildfire
* India joins elite missile tech group controlling global sale
* LEADING OFF: Tulo back in Colorado; Indians try to hang 10
* A look at Iraq's war against IS after Fallujah

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Illinois to get $17 million for HIV assist......

* Workplace retaliation suit against Tammy D......
* Is Tammy Duckworth a sure bet to beat Mark......

* Berman: What Would Gay Christians Have Straight Christians To Do?
* New Kirk ad emphasizes how un-Republican the U.S. Senator is
* What's the Difference Between England, Britain and the U.K.?
* People ought to have enough sense to keep track of their own due dates
* Drobinski, Rod Drobinski
* Paul Ryan isn’t the first guy to try to stop a sit-in.
* Six Clinton delegates on the Platform Committee who voted against a $15 minimum wage.
* "Pride at Montrose" Happening At The Lakefront 11am-6pm
* A Pride Of Lion(s)
* Local Pride!


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller