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.


* Unions file suit in St. Clair County
* Reader comments closed for the holiday weekend
* AG Madigan files TRO
* In re James Dimas
* Question of the day
* Weirdest. Oppo Dump. Ever.
* Big bucks reported by Zopp, Raja
* LIVE Comptroller Munger press conference coverage
* Yet another clock starts ticking down
* Hey, Cardinal fans...
* Rauner makes cheery visit to Illinois State Museum
* The Tier 2 difference
* *** UPDATED x4 *** Attorney General goes to court
* Credit Unions – Protecting Financial Futures
* GOP legislator wants "temporary, balanced budget"
* Food for thought
* The blame game
* Meanwhile, in the real world...
* When Indiana invaded Illinois
* 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

          
        * LG G Pro 3 to sport a 6-inch QHD display and Qualcomm’s S820 SoC according to a recent leak
        * Yotaphone isn’t leaving Android after all
        * Using the Timer, Alarm, and Stopwatch Apps on Apple Watch
        * YotaPhone drops Android in favor of Jolla Sailfish (UPDATE: no it doesn’t)
        * Sony Xperia Z3+ can now be bought unlocked on Amazon US
        * Telltale’s Minecraft: Story Mode gets detailed, due out on Android in 2015
        * Find out your device’s worth with Swappa Android app

        * Make Creamier Ice Cream with Powdered Skim Milk
        * Browsy Is a Fullscreen, Distraction-Free Browser for iOS
        * Swappa Price Tells You What Your Phone is Worth
        * This Graphic Explains How Champagne, Prosecco, and Cava Differ
        * Create a Perfect Cheese Plate With This Mnemonic Device 
        * The Best Fourth of July Deals: Headphones You Love, KitchenAid, & More
        * 10 Tricks for a Perfect Summer Cookout in Three Minutes

        * White Sox slip past O's for fourth straight win
        * Jenks 'fortunate' to have played in big leagues
        * All-Star experience a fond memory for Abreu
        * All-Star starters unveiled Sunday, full rosters Monday
        * White Sox bring Carson Fulmer into the fold
        * Danks backs up comments with strong outing
        * Abreu's HR all Danks needs against Orioles

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


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

        Archives
        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


        * Greg Hinz on Politics Who's to blame for the su.....
        * Rich Miller on Springfield Can Rauner pit Culle.....
        * Facebook Twitter LinkedIn Google +0 - Crain's C.....
        * Illinois mired in uncertainty over budget - Voc.....


        * East St. Louis paid big legal fees to state senator's firm
        * Report: Firm fees from Chicago schools borrowing tops $18M
        * Organizers of Navy Pier July 4th fireworks say arrive early
        * Woman known for trying to sneak on planes arrested again
        * State budget limbo affects services and projects
        * A look at the race to replace ex-Illinois Congressman Schock
        * Race to replace ex-Rep. Schock a classic GOP primary contest
        * 3 employees injured when car hits Urbana restaurant
        * Child hospitalized in Rockford after hit-and-run accident
        * Records: Man accused of pulling gun on trooper has record

        * Illinois Senate honors victims of Charleston church shootings
        * Bill would allow cameras in Illinois nursing homes
        * State employee lawsuit seeks assurance of full pay despite no budget
        * U of I freezes administration hiring over budget
        * Attorney General Lisa Madigan seeks court ruling on state payments during budget impasse
        * Illinois EPA: State has landfill capacity for 21 more years
        * State lawmakers point fingers over budget impasse; temporary budget in limbo
        * Former Illinois treasurer employees under Dan Rutherford sue over firings
        * Lawmakers point fingers over budget impasse; temporary budget in limbo
        * Illinois medical marijuana patients now number 2,600

        * Toni Preckwinkle's monster
        * Why Caterpillar is letting its geek flag fly
        * How much could Chicago pension payments jack up your property tax bill? Try 30 percent
        * Who's to blame for the summer of governmental meltdown?
        * Can Rauner pit Cullerton against Madigan against Emanuel?


          * Follow our live coverage of the Fourth
          * Mom of teen killed at Hadiya Pendleton Park: 'My baby's gone. My baby's gone.'
          * Wisconsin man killed in Tinley Park crash
          * 16 people rescued from burning boat off Oak Street beach
          * Woman killed after jumping from moving vehicle on Bishoop Ford
          * Boy, 14, fatally shot in Milwaukee after Facebook fight
          * 'Serial stowaway' arrested at Midway day after released from jail
          * 4 dead, 10 wounded in Chicago as July 4th weekend begins
          * 'This is always my church, so to speak, where I can come and dance'
          * 2 teenagers hurt in gang-related crash in Logan Square


          * Coping while black: A season of traumatic news takes a psychological toll
          * Rauner proposal would advance $450M to help Chicago schools
          * For same-sex marriage opponents, the fight is far from over
          * Emails show Emanuel, top officials aware of Clinton's private address
          * After pension payment, Chicago Public Schools to make $200M in cuts
          * CPS, Emanuel warn of deep cuts, layoffs to school district
          * After marriage equality, what's next for the LGBT movement?
          * The night Chicago politicians spent punching each other in the face
          * The legacy of Willie Dixon on his 100th birthday
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions


          * Illinois Senate honors victims of Charleston church shootings
          * Kenny Hartman: EPA stifling input on renewable fuel changes
          * Bill would allow cameras in Illinois nursing homes
          * Charles Krauthammer: The worst agreement in U.S. diplomatic history
          * State employee lawsuit seeks assurance of full pay despite no budget
          * Our Opinion: Springfield's toilet paper caper exposes the worst and best in people
          * Esther Cepeda: Adding a woman to $10 bill an empty gesture
          * U of I freezes administration hiring over budget
          * Attorney General Lisa Madigan seeks court ruling on state payments during budget impasse
          * Illinois EPA: State has landfill capacity for 21 more years


          * Patriotic Flight
          * 2015 Fourth of July Parade
          * Champaign County Freedom Celebration 5K
          * July 6 Bob Asmussen chat
          * Saturday SportsTalk 07-04-15
          * Misconduct trial of BPD officer delayed again
          * Daily Digest 7/4/15
          * UPDATED: Three burned when car hits Lil' Porgy's
          * Meth explosion sends one man to hospital
          * Updated: Meth explosion sends one man to hospital


          * Garcia's great catch lifts Chicago White Sox to fourth straight win
          * Smoke from Canadian fires blows as far south as Tennessee
          * Ohio community on edge after six women vanish
          * Exercise, patriotism and a good cause in St. Charles 'Freedom' run
          * GB Packers tight end Quarless charged with firing a gun

          * 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

          * Durbin, Kirk working together on U.S. atto......

          * Thousands Line Route For Arlington Heights......

          * Some Bloke's Chicago Town Pizza Review
          * NRA and Illinois State Rife Association endorse LaHood
          * NRA and Illinois State Rifle Association endorse LaHood
          * John Fitzgerald Lyke, Jr. appointed to Biebel vacancy
          * Thorner: Judicial activism prevails on the cusp of Independence Day
          * Happy 4th of July
          * Superheroes Meet Superkids
          * The Week In Chicago Rock
          * Rahm has gone from the F word to the B word.
          * The NEA RA rolls into its first day with a focus on race and racism.


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report




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