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.


* Oberweis now for gay marriage
* The patented Pat Quinn close has begun
* Question of the day
* McKinney resigns from Sun-Times: "I’m convinced this newspaper no longer has the backs of reporters like me"
* Another one pops
* Reality vs. reporting
* New anti-Rauner theme: "Wolf of Winnetka"
* Redefining Bobby
* Pat and Bruce
* The lindane file
* US judge orders hiring monitor at IDOT
* Underdog endorsements
* Birth control, millionaires and the minimum wage
* Good morning!
* 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 Lumia branding goes official, new device coming soon
        * LG G3 Screen announced with new NUCLUN octa-core processor
        * OFFICIAL: LG comes out with own proc, F490 is the LG G3 Screen
        * LG’s F490 shows up in Vietnam, up close images available
        * Say hello to Microsoft Lumia
        * Xbox Video for Windows Phone gets new features in update
        * Leaks point to an HTC Desire 820 Mini, that’s not so mini

        * Digital River to Be Acquired by Investor Group for $840 Million
        * Microsoft Lumia Branding Revealed
        * Amazon posts massive quarterly loss
        * LG NUCLUN Octa Core Mobile Processor Announced
        * Carphone Warehouse Starts Selling Pink HTC One Mini 2
        * Updated Grand Theft Auto: San Andreas is coming for Xbox 360
        * Verizon Starts Taking Sony SmartWatch 3 Pre-orders

        * Longtime scout Provas passes away after battle with cancer
        * Eaton, Ramirez named AL Gold Glove finalists
        * Gold Glove Awards finalists revealed
        * White Sox AFL class features talented Anderson
        * Nori Aoki: The White Sox Killer of 2014
        * World Series Game 2: Notes and discussion
        * 23 potential MLB free agents as SkyMall items


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

        Archives
        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


        * Moderators of the 2014 Debates Overwhelmingly A.....
        * BC-IL--Illinois News Digest 12 am, IL..
        * Rauner Campaign Accused of Bullying Newspaper..
        * Candidates Differ on Charter Schools..


        * Officials rethink vote-counting after AG decree
        * Quinn says he'll comply with hiring monitor
        * Complications arise just 12 days before Ill. vote
        * Vereen brothers square off when Bears visit Pats
        * Gary killings put spotlight on abandoned buildings
        * Illinois GOP files lawsuit over poll practices
        * New bridge helping ease Chicago rail congestion
        * Injured Illinois Cub Scouts expected to recover
        * Woman admits theft from Quincy community theater
        * Jobless rate falls in all 12 Illinois metro areas

        * Officials rethink early vote-counting after Madigan ruling
        * Minimum wage increase supporters urge early voting
        * Sun-Times political reporter resigns following Rauner complaint
        * Minimum wage hike supporters urge early voting
        * Federal judge orders court-appointed monitor for IDOT hiring
        * Rep. Raymond Poe to undergo stem cell transplant
        * Bill Clinton campaigns for Quinn, Durbin
        * Quinn, Rauner spar over jobs, taxes
        * Election 2014: Learn about all the candidates
        * What to watch for in third governor debate tonight

        * Quinn says he'll comply with hiring monitor
        * Sun-Times' colorful past in covering (and making) news
        * Chicago KPMG executive named Girl Scouts board president
        * Record annual haul for U of C fundraising
        * Airlines say Ebola not scaring away flyers


        * Marina City residents reminded to watch their step during Wallenda’s walk
        * At panel on school closings, board acknowledges more planning needed
        * Republican senators question Quinn’s IDOT scandal response
        * Child who became ill on plane tests negative for Ebola
        * Tollway might permanently lower cost to open I-Pass account
        * Illinois needs better way to deal with terminally ill inmates
        * Killer gets 27 years for throwing woman out 3rd-floor window
        * CPS wants to delay new standardized test, even though state already has said 'no'
        * Father Bob Botthof, teacher who became priest after losing wife, dies at 85
        * Scandal or not, Bring on that  federal monitor


        * Off-duty Chicago police officer shot on South Side
        * 1 stabbed, 3 teens shot in separate incidents
        * Ebola test negative for child who fell ill on flight from Liberia to O'Hare
        * Cops: Girl, 12, with bipolar disorder missing
        * War vets vying in 8th District diverge on Islamic State tactics
        * Tollway update: 400 lawsuits filed against scofflaws
        * Pit bull breaks through screen door, attacks woman in Carpentersville
        * Victim of serial killing suspect lived in fear: 'She was too scared to do anything'
        * Man sentenced to 35 years for sex assault on girl, 12
        * Man charged with arson in Logan Square fire


        * Bedrock 66: Charlie Parr Plays Springfield Friday
        * Oberweis Would Back Federal Same Sex Marriage Law
        * Wild Bison Return To IL
        * Scary Story: The Diviner by Susan Vondrak
        * Artist Profile: Local Troubadour Tom Irwin
        * Real estate and religion: The tale of Seventeenth Church of Christ, Scientist
        * Suspicion lingers over Ebola treatment
        * Judge Orders Court Appointed Monitor For IDOT Hiring
        * 13th Dist. Candidates Talk NAFTA, Ebola During Springfield Debate
        * Attorneys Due In Court For Quinn Hiring Lawsuit


        * Our Opinion: Bell, Manar, Davidsmeyer endorsed in state legislative races
        * Craig Burns: Honesty, integrity in great supply at CWLP
        * E.J. Dionne: Ebola, pandering and courage
        * Esther Cepeda: Benefits of closing the word gap
        * Officials rethink early vote-counting after Madigan ruling
        * Our Opinion: Frerichs has the expertise to be Illinois treasurer
        * Robert Kaestner: Good education policy is good health policy
        * Eugene Robinson: Warren makes the case for a presidential run
        * Bernard Schoenburg: Local Rauner ad leaves out ‘everything Springfield isn’t’ line
        * Minimum wage increase supporters urge early voting


        * Letter: With sales tax, 117 is doing the wrong thing
        * Open Line
        * Our View: Checking vote a sound caution in these days
        * Looking Back (Oct. 24, 2014)
        * Group to host movie and costume party
        * Animal shelter to hold annual fundraiser
        * ‘Dr. Jekyll and Mr. Hyde’ takes the stage in time for Halloween
        * Tucker completes basic training
        * Interfaith Council to host dinner
        * SIU and Co-op hold community project


        * Girls tennis: Thursday's results
        * Girls volleyball: Thursday's results
        * Girls volleyball: Carmel picks up share of ESCC title
        * Could Hinrich, Mohammed coach one day?
        * Hawks can't climb out of 2-goal hole

        * Patrick Cannon defense strategy rare but n...
        * Feds fine Jesse Jackson Jr.'s campaign com...
        * Ex-Congressman Jesse Jackson Jr. faces sen...
        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * U.S. House Passes Resolution Condemning An...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...

        * US Senate: Durbin for another term...
        * Rauner Campaign Accused of Bullying Newspaper...
        * Rauner Campaign Accused of Bullying Newspaper...
        * Rauner Campaign Accused of Bullying Newspaper...
        * Rauner Campaign Accused of Bullying Newspaper...

        * U.S. Senator Mark Kirk to talk with Triton......
        * A Brief History of Michelle Obama Career-G......
        * Marco Rubio, Mark Kirk Warn John Kerry on ......

        * The Heavy Metal Scene in Tehran [video]
        * College Republicans launch new ad: Why I Am [video]
        * Bustos and Illinois Dems attempt to paint Schilling as "pro-rape"
        * Lessons Learned from Past Tax Reform Efforts [video]
        * Illinois Watchdog Radio - Live on IR
        * Stantis: Captain Pat Quinn and our ship of state
        * Do celebrity backings mean much to pols? Or just to their wallets?
        * Chicago Ald. Latasha Thomas Will Not Run For Re-Election
        * McKinney, Clout & The Freedom Of The Press: Where Would Illinois Be Headed Under Rauner's Reign?
        * Waukegan’s school board president speaks. Crazy talk.


        * New Ad: Labor leader backs Rauner
        * Jewish Newspapers Endorse Rauner for Governor
        * TV Breaking News: Ethics blow for Pat Quinn
        * Federal judge deals Quinn ethics blow on IDOT patronage hiring
        * Rauner Statement on Federal Hiring Monitor at IDOT




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller