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.


* The Democrats' budget time bomb is starting to explode
* State threatens to zap all Chicago GSA school funding
* Another optics problem
* This is why we can't have nice things
* Tiny, secluded county wants no part of ATV plan
* It's just a bill
* Feds drop drug conspiracy charges
* Governing ain't easy
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

          
        * One Billion Android smartphones shipped globally in 2014
        * How Android could compete with the Microsoft Surface Hub
        * The Week in iOS Apps: Outlook lands on iOS, TurboTax reminds you about tax season, and more
        * Facebook edges into Foursquare territory with place tips on iOS
        * 'Vine Kids' for iOS Launches With Streamlined Interface and Focus on Kid-Friendly Content
        * Get the ball in the hole in Ultraflow
        * Possible Galaxy S6 schematics suggest Samsung’s slimming the phone down

        * Blizzards (Comic)
        * Alibaba and Chinese Government Make Nice After Brouhaha Over Counterfeits
        * Hang a "Discard Bag" in Your Closet to Regularly Declutter Clothes
        * AT&T, Verizon, Dish were the big spenders at 4G auction
        * A model that can predict the unpredictable New England Patriots
        * Cook Risotto in 3 Minutes and "Ramen-ize" Rice with Baking Soda
        * T-Mobile, AT&T and Verizon Win Spectrum in FCC Auction That Raised $41.3 Billion

        * Inbox: How will new-look Sox lineup affect Abreu?
        * Keith Law likes the White Sox (more than PECOTA does, anyway)
        * Which prospects will make the Top 100 cut?
        * White Sox embrace their position as favorites
        * White Sox embrace position as contenders
        * What else is returning with Gordon Beckham?
        * Which prospects will make the Top 100 cut?

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


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

        Archives
        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


        * Marijuana vending machines: Seattle's first dis.....
        * IL Attorney General Lisa Madigan's "Friends and.....
        * Another optics problem..
        * Standoff continues over CPS' snub of federal te.....
        * Hundreds expected to attend Ernie Banks visitation..
        * Governing ain’t easy..
        * Measles outbreak out west ignites vaccine debat.....
        * Gov. Bruce Rauner defends paying staff more tha.....
        * Gov. Rauner defends paying staff more than pred.....
        * Rauner wants bureaucratic cuts in education, el.....


        * Gov. Bruce Rauner defends paying staff more than predecessor
        * Pro wrestler cheats at Wing Bowl, hides food in fanny pack
        * Chicago suburb to honor Harold Ramis during Groundhog Days
        * Crundwell court filing says she wants to keep horse trophies
        * SIU student newspaper bids farewell to old printing press
        * AbbVie reports better-than-expected 4Q on Humira sales
        * Cellphone providers bringing 4G coverage to Chicago subways
        * Visitation for Ernie Banks to be held in Chicago
        * On Super Bowl Sunday, veggies are most popular food
        * Missouri man gets 4 years in 1993 Tremont burglary

        * Rauner defends paying staff more than Quinn did
        * Top Rauner staff receiving higher pay than Quinn's
        * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
        * Rauner staff receiving higher pay than Quinn's
        * New DNR director Rosenthal touts experience
        * Rauner wants bureaucratic cuts in education, elsewhere
        * New DNR director touts experience
        * Springfield unemployment falls to 5.6 percent in December
        * Springfield gaming terminal up 46 percent in 2014; revenue hits $1M
        * Springfield gaming terminals up 46 percent in 2014; revenue hits $1M

        * AbbVie falls on 'disappointing' hep C drug forecast
        * What people don't get about 'boring and bland' Scott Walker
        * CME loses bid for GFI: source
        * Romney: I'm out
        * At least one CEO isn't using currencies as an excuse


          * Cop falsely accused in 'honeybee' murder case settles suit with Will County
          * Ban will cost Rita Jeptoo the Chicago Marathon title
          * Money manager sentenced to 14 years in prison for massive fraud
          * Girl, 15, went missing 9 months ago from Rockford
          * Lake Bluff contractor accused of stealing $9,000 deposit
          * Rahm Emanuel counts on big donors, with many getting City Hall benefits
          * Tollway working with environmentalists to boost population of monarch butterflies
          * Cicero orders church closed, calls it a 'safety nightmare'
          * Mayoral candidates to square off again
          * U. of I. student from Chicago reported missing since Sunday


          * Rauner Staff Receiving Higher Pay Than Quinn's
          * Rauner Defends Higher Staff Salaries
          * Unmasking Ernie Banks
          * Guzzardi Wants Parents To Be Able To Opt Kids Out Of Testing
          * National Weather Service Latest Snow Projections
          * Rauner Tells U Of I To Cut Bureaucracy
          * Group Says Railroad Threatens To Isolate East Side
          * Proposal Would Ban Conversion Therapy For Minors
          * Speaker Madigan: How Can Illinois Prevent A Sandy Hook?
          * Listen to State Week - January 23, 2015


          * Rauner defends paying staff more than Quinn did
          * Our Opinion: Residency not the best gauge of loyalty
          * Cary Collins: Other options for fixing Illinois' pension problems
          * E.J. Dionne: For the Patriots, without apology
          * Esther Cepeda: Paid sick leave is a worthy prescription
          * George Will: Bud Selig's winning legacy
          * Quote of the Day: Friday, Jan. 30, 2015
          * Top Rauner staff receiving higher pay than Quinn's
          * Springfield lawmakers want oversight commission to monitor 10th Street rail promises
          * New DNR director Rosenthal touts experience


          * Bloomington issues parking ban ahead of expected winter storm
          * Snowy weekend on tap for East Central Illinois
          * Gov. Bruce Rauner defends paying staff more than predecessor
          * Fire damages greenhouse on UI campus
          * Metro Emergency Tactical Response Operations
          * Inside SWAT's new ride
          * Blackhawks Hall of Famer Stan Mikita has brain disorder
          * Boil order issued by Devil's Kitchen Water District
          * Boil order issued in Harrisburg
          * 01-30-15 Penny for Your Thoughts


          * Low-income parents face daycare crisis as funding runs out
          * Goodell: No decision yet on discipline for Lynch
          * Roger Goodell: NFL to hire chief medical officer
          * Carroll says decision is Sherman's if baby arrives early
          * Blue Jackets activate Murray, sent Anderson down to AHL

          * Rep. Lipinski Announces Service Academy No...
          * Rep. Lipinski Recognizes and Celebrates Na...
          * Kinzinger, Lipinski Offer GOP-Democrat Uni...
          * Chicago March for Life doubles attendance ...
          * Archbishop Blase Cupich, Congressmen Dan L...
          * Archbishop Cupich joins hundreds at March ...
          * Rep. Lipinski Helps Pass Veterans' Suicide...
          * Lipinski: There's still a lot of work left...
          * IRS Hires Company at Center of Obamacare R...
          * Renewed Voting Rights effort urged - San D...

          * Navistar : SEC alleges Navistar withholdin......
          * SEC alleges Navistar withholding documents......
          * Keystone vote: Senate's new openness comes......
          * Fans, teammates pay respects to Banks toda......
          * Durbin, Murray, Sanders, Senators Urge Pre......

          * Sen. Kirk pushes $300-million plan to help......
          * Sen. Kirk blasts British PM for lobbying a......
          * Senate Hard-liners Press Ahead with New Ir......

          * Rauner’s worker empowerment zones.
          * Tim Furman: Andrea Zopp and the zombie lie.
          * Activists Bring Fight To Save A Rogers Park 'Community House' To Citibank (VIDEO)
          * Deb Mell Takes Heat For Family Ties At 33rd Ward Candidate Forum
          * Study: Top 1% Of Earners In Illinois Captured 97% Of Post-Recession Income Gains
          * U Of C Nurses Vote To Authorize 1-Day Strike
          * Poll: Most Chicago Voters Support Parkland Use For Obama Library
          * December Unemployment Rate Ticks Down In All Illinois Metro Areas
          * New Ald. Beale mailer #Aldertrack
          * Ben Shapiro: The First Amendment is Dead [video]


          * IDHS reminds eligible workers to take advantage of free tax help and the Earned Income Tax Credit (EITC) - More than 30 sites offer free tax services Statewide
          * IEMA, American Lung Association Launch Health House - Radon Excellence Program in Savoy - Two Champaign builders coordinating with Heyworth radon mitigator in program to reduce radon-related lung cancer risks in new homes
          * One Confirmed Case of Measles in Illinois
          * Governor announces latest round of agency appointments
          * Rauner announces “Turnaround Team” - Stellar team to help turn Illinois around




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