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
* SUBSCRIBERS ONLY - More on the state grant suspensions
* SUBSCRIBERS ONLY - Fundraiser/event list
* How can we miss you if you won't go away?
* Question of the day
* Supreme Court justice ordered to testify
* Chicago downgraded
* Today's number: 4-6 weeks
* SUBSCRIBERS ONLY - Human service cuts and state grant suspensions
* Stating the obvious
* *** UPDATED x1 - Double-down *** They really make this too easy...
* Crain's: "Market-based" solution is rigged
* *** UPDATED x1 *** Even more problems for Schock
* 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

          
        * Acer announces new members of its Liquid smartphone series
        * Acer Liquid Jade Z: premium features, “wallet-friendly” price
        * Acer Liquid Leap+: platform-agnostic, exchangeable straps
        * MWC 2015 daily wrap-up: Day 0
        * Samsung Galaxy S6 vs Apple iPhone 6 comparison (Video)
        * Samsung Galaxy S6 vs S6 Edge: MWC 2015 comparison (Video)
        * Samsung Galaxy S6: hands-on with the new flagship (Video)

        * Samsung Galaxy S6 and S6 Edge unveiled – Mixed bag of surprises!
        * Huawei’s Latest 4G LTE-Enabled Android 5.0 Tablet With Octa-Core Processor
        * Acer Releases Another Entry-Level 11.6-Inch Notebook
        * Get This Affordable HD Sports Action Camera For Just $31.89
        * ZTE’s New Grand S3 4G LTE-Enabled Android 4.4 Smartphone With Eyeprint ID Biometric Technology
        * David Besbris Is No Longer Running Google+
        * Peek at Your Work Email Sunday Night To Get a Jump on The Week

        * No one meant more to White Sox than Minoso
        * Beckham getting work around infield
        * Beloved Minnie was a Chicago treasure
        * Baseball mourns the loss of Mr. White Sox
        * White Sox players remember Minoso
        * Rodon will take Sale's spot in Cactus rotation
        * Beloved Minnie was a Chicago treasure

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


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

        Archives
        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


        * Illinois hunters, outdoorsmen hope for ally in .....
        * Rauner blasted for proposed cuts in cancer scre.....
        * Rauner's budget plan could add millions annuall.....
        * Rauner budget could mean fewer Amtrak trains..
        * Rauner’s proposed budget cuts to affect Eastern..
        * Hunters, outdoorsmen hope for ally in Rauner..
        * Illinois hunters, outdoorsmen hope for ally in .....


        * Lady Gaga, Vince Vaughn take charity polar plunge in Chicago
        * Major league baseball's 1st black Latino star Minoso dies
        * Garage fire victim died of smoke inhalation, burns
        * Rauner budget could mean fewer Amtrak trains
        * President Obama remembers Minnie Minoso as 'Mr. White Sox'
        * Peoria police expand use of gunshot detection technology
        * 16-year-old boy charged with murder in Aurora shooting death
        * Pipeline may carry crude oil through southern Illinois
        * Illinois hunters, outdoorsmen hope for ally in Rauner
        * Late-winter storms spread across areas of Southwest

        * Hunters, outdoorsmen hope for ally in Rauner
        * Tim Butler, congressional staffer, selected to fill former Rep. Rich Brauer's seat
        * Schock reimburses costs for lavish 'Downton Abbey' office decor
        * Brauer replacement could be chosen as early as Saturday
        * Quinn advocates consumer rights, blasts Rauner's budget
        * Rauner says he's 'staying out' of Chicago mayor's race
        * Quinn advocates consumer rights in Loyola speech
        * Judge won't delay sentencing for former state lawmaker Farnham
        * Lt. Gov. Sanguinetti says GOP should court women, Latinos
        * Explore salary information for the state of Illinois

        * Illinois hospitals, health care groups oppose Rauner's cuts to managed care
        * Why even mid-sized trading firms are hurting
        * What's happening with Chinatown's Tony Hu?
        * What's going on at Quick Leonard Kieffer?
        * National Louis University's radical rethink


          * Traveling Negro Leagues exhibit will be dedicated to Minnie Minoso
          * Missing boy, 12, located
          * Coaching legend Gillespie dies at 88
          * $75K bail for alleged DUI motorist accused of injuring elderly man
          * Autopsy: Minoso died from tear in pulmonary artery
          * Fans of Minnie Minoso pay tribute to player, baseball ambassador
          * Wis. Gov. Walker changes mind about immigration, now rejects 'amnesty'
          * Investigation into 'crash-and-grabs' nets arrest
          * In Wrigleyville, a wall dedicated to Minnie Minoso
          * Lady Gaga, Vince Vaughn take icy lake plunge for Special Olympics


          * Will Rauner Get Tough On Getting Tough On Crime?
          * AP: Lawmaker Aaron Schock billed private planes, concerts to taxpayers
          * White Sox icon Minnie Minoso dies
          * Chronic Mismanagement Drove State Into Its Fiscal Mess
          * People
          * Essay – Cashing In On Cutting Carbon
          * Lawmakers Aim To Prohibit Sexual Orientation Conversion Therapy For Minors
          * Legislative Checklist March 2015
          * Lincoln Lore
          * Illinois Not Alone In Post-Recession Budget Woes


          * Quote of the Day: Monday, March 2, 2015
          * Hunters, outdoorsmen hope for ally in Rauner
          * Our Opinion: Looking for the leaders among Springfield's candidates
          * Statehouse Insider: That's not a nice thing to say
          * Rep. Rodney Davis and Rep. Mike Bost: Strong financial markets benefit Illinois
          * Quote of the Day: Sunday, March 1, 2015
          * Bernard Schoenburg: Report talk of Houston fundraiser just 'secondhand' info
          * Scott Zeramby: Consider the environment as marijuana industry emerges in Illinois
          * Tim Butler, congressional staffer, selected to fill former Rep. Rich Brauer's seat
          * Charles Krauthammer: The fatal flaw in the Iran deal


          * Archaeologist details Lincoln-related Bloomington dig
          * State police re-route traffic on I-88 after bus fire
          * City cancels snow emergency
          * President Obama remembers Minnie Minoso as 'Mr. White Sox'
          * March 3 UI women's basketball, volleyball, baseball and recruiting chat
          * Police Beat
          * Firefighters, police rescue three from apartment blaze
          * Firefighters, police rescue 3 from apartment blaze
          * Rauner budget could mean fewer Amtrak trains
          * Another winter blast


          * Roy Hibbert leads surging Pacers to 94-74 win over 76ers
          * Harper leads Wolves to 4-1 victory
          * Lillard, Aldridge leads Blazers past Kings for 3rd in a row
          * Asia stocks mostly rise as China rate cut offsets US data
          * With no Durant or Westbrook, OKC still tops Lakers 108-101

          * Mark Kirk's prepping for a barnburner — an...
          * Mark Kirk's prepping for a barnburner — an...
          * Why are Democrats suddenly cheering in Ohi...
          * Congresswoman Robin Kelly to Host Housing ...
          * Jewish disability activists lobby Congress
          * Combined Insurance Honored as Top Military...
          * Fitzpatrick, Bustos reintroduce bipartisan...
          * Seven Other Members Who Aren’t David Scott...
          * Duckworth returns to Washington; Will she ...
          * Tough vote on override

          * Schumer Calls For Legislation Preventing S......
          * Sen. Feinstein: “that arrogance does not b......

          * On Eve of Netanyahu Speech, Kerry Says Nuc......
          * RPT-Homeland Security funding drama darken......

          * The Hill: Is Supreme Court's chief justice ready to take down ObamaCare?
          * Buena Bunnies Build Baskets, On March 22nd
          * My post at In These Times: Why is Unite Here supporting Rahm?
          * Golan strikers celebrated their victory today by working with a union contract.
          * Towns Made for Burning
          * Chicago progressive election score card.
          * Who is claiming easy victories?
          * Skokie’s Golan strikers and labor solidarity.
          * Monday Is Casimir Pulaski Day
          * Jesse White Says Mayor Should “Rethink” Red Light Cameras


          * IEMA Urges People to Prepare for Severe Weather - Tornadoes, floods and severe storms can happen any time of year
          * IDHS helps more than 5,000 individuals with disabilities find jobs - Program offers necessary tools to earn a living wage and become more independent
          * 24th Anniversary Desert Storm Remembrance Ceremony
          * Illinois Department of Human Rights Announces 2015 Spring Training Schedule
          * Snow and Freezing Rain to Impact Travel in Illinois - IDOT Crews Prepared to Battle Winter Weather this Weekend




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