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.


* IDOC blames Cook sheriff for accidental inmate release
* What to expect today
* "Right to work" case appealed
* Is Rauner betting on "Little Trump"?
* Steve Schnorf
* *** UPDATED x1 - AFSCME responds *** Rauner admin has new website for potential strike breakers
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

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

...............
<


Loading


* Excerpts from recent editorials in newspapers i.....
* Expert: 'Grand bargain' bill puts banks before .....
* Rauner, Chance the Rapper to talk Chicago schoo.....
* GM, tech firms in Illinois self-driving fight..
* Excerpts from recent editorials in newspapers i.....
* Excerpts from recent editorials in newspapers i.....
* Excerpts from recent editorials in newspapers i.....
* Excerpts from recent editorials in newspapers i.....


* Jury selection to start in ex-prosecutor's murder retrial
* Excerpts from recent editorials in newspapers in Illinois
* Complaint filed about building were 2 kids die in house fire
* American Airlines flight diverts to Denver after turbulence
* Officials: State wasn't told slaying suspect should be held
* EXCHANGE: Couple starts feminine product bank for needy
* Illinois honoring service members killed in Desert Storm
* Prosecutors investigating if cop tainted other convictions
* 2 nabbed in separate Medicaid fraud probes by state police
* Man accused in killing mistakenly released from custody

* In response to possible AFSCME strike, Rauner launches jobs website
* Corrections officials: State wasn't told Chicago slaying suspect should be held
* Rauner, Chance the Rapper to talk Chicago school funding
* United announces plans for more flights, new destinations
* Gov. Rauner wants more Medicaid clients on managed care
* Sanctuary issue draws dueling demonstrations to Capitol
* Rauner's office: Gov spends 55% of Illinois nights at Mansion
* Report: State senator's law firm dealings under scrutiny
* Durbin wants open look at Russian involvement in election
* Trump puts moderate GOP governors in awkward spot

* Oscars oops could spell lasting brand damage for PricewaterhouseCoopers
* Trump promises 'something special' on health care before speech
* CPS might end school year weeks early: reports
* Charter school group touts success in getting grads to college
* Rauner scraps Medicaid managed care, outlines new plan


* Lost wallet leads to arrest in Vernon Hills vehicle burglaries
* Maddon shares the rings, keeps the ‘thought’ for himself
* Man charged with sexually assaulting acquaintance in Lincolnshire
* 51-year-old man fatally struck by train in Gary
* Donald Trump speaks to Congress tonight: Will Democrats boo?
* Making history, picking night crawlers in February: Bowman’s Bits
* Ask the Doctors: Multiple prescriptions can have interactions
* Person shot in Round Lake Beach
* Chance the Rapper on Chicago: ‘This is where I’m supposed to be’
* Police investigate ‘attempted child enticement’ in Elmhurst


* Target rattles Wall Street as profits fall 43 percent
* NASA returns priceless bag of moon dust to Chicago-area woman after suit
* NFL teams get jump start on franchise tags
* Donald Trump's populism is a charade
* Paczki day specials from 37 Chicago restaurants and bakeries
* 'The Bachelor' Episode 9 recap: Ding dong the witch is dead
* Businesses roll out red carpet for 'Gary from Chicago' after star turn at Oscars
* Academy apologizes for Oscars best picture mix-up
* Alshon Jeffery’s apparent exit continues the Bears’ lousy pattern
* Transgender policy to stand in U-46


» Rauner, Chance The Rapper To Talk Chicago School Funding
» Advocates: Caps On Charter Schools Are 'Bad For Our City'
» CPS: School Year May End Early If State Doesn't Provide More Money
» Doctors Warn Against Teen Pot Use Amid Looser Marijuana Laws
» Illinois Town In Trump Territory Backs Detained Immigrant
» Chicagoans Rally To Support Trans Rights After Trump Rescinds Student Protections
» Rauner Has Plan To Keep Government Running In Case Of Strike
» Congressman Rush Declares His Offices As Sanctuaries
» Weekend Funerals For Young Victims Of Chicago Violence
» CPS Relents, Returns $15 Million to Poorest Chicago Schools


* In response to possible AFSCME strike, Rauner launches jobs website
* Corrections officials: State wasn't told Chicago slaying suspect should be held
* Scott Reeder: AFSCME needs to understand the necessity of sacrifice
* Rauner, Chance the Rapper to talk Chicago school funding
* United announces plans for more flights, new destinations
* Gov. Rauner wants more Medicaid clients on managed care
* Sanctuary issue draws dueling demonstrations to Capitol
* Angie Muhs: It's time to name another Reader Advisory Board
* Bernard Schoenburg: Duckworth names 'thoughtful' former boss to downstate post
* Statehouse Insider: It's not the money, it's the appearance


* Highland barely survives playoff win over MVC rival Indians
* Governor, rapper to talk school funding
* Belleville principal retiring at end of the school year
* It's happening: Cubs trophy headed to Decatur
* Lane closures set on I-70 from Prairie Road to Baumann Road
* Storms could pack powerful punch
* SIUE wants national honor society for military, veteran students
* Petersen not guilty by reason of insanity in parents' death
* 15 events you won't want to miss in March
* Oh, heavens! Highland Community Chorus to begin fourth season


* Victorious Fremd is headed downstate again
* Forecast calls for storms, hail in Chicago area
* Teen shot in leg in Round Lake Beach
* The Latest: Ryan downplays divisions over new health law
* Kellyanne Conway kneels on Oval Office couch, sparks debate

* Group upset with Trump wants Town Hall mee...
* Protesters converge on US Rep. Randy Hultg...
* GOP congressman appears to distance himsel...
* Hultgren posts comments on health care ref...
* Hultgren criticizes immigration ban, Roska...
* Congressmen Call for Probe into Macedonian...
* Hultgren to participate in veterans forum ...
* Majority of IL Congressional Delegation Op...
* Hultgren to join veterans' forum at Geneva...
* Group upset with Trump wants Town Hall mee...

* Lawmakers' guests for Trump's speech picke......
* Democrats are bringing 'DREAMers' to Trump......

* Senator Tammy Duckworth Hosts Transportati......

* Gutierrez condemns Trump Admin for wielding "meat axe" to community trust
* McSweeney leads effort to stop new beverage taxes
* Prolife group calls on Illinois governor to veto taxpayer abortion funding bill
* The disaster plan. Illinois’ teacher evaluation.
* DeVos: Plessy v. Ferguson was a school choice decision.
* Four Illinois Congress members win Family Research Council's "True Blue" Award
* The [Tuesday] Papers
* Louise Kiernan will head ProPublica in Chicago
* CPS will have to end current school year 20 days early without more state funding, and other Chicago news
* Keeping retirement weird. Mark Giangreco and the Rauner PAC.


* Governor Announces Medicaid Managed Care Reboot
* Returning Illinois Products Expo Offers 'Taste of Illinois Agriculture' - Supporting Illinois agri-businesses creates boost to Illinois economy
* Governor Celebrates Black History Month
* Governor Bruce Rauner Honors Carnegie Hero From Buffalo Grove
* Governor Addresses State Board of Education to Emphasize Importance of Strong Accountability Standards

  
* Expect an LTE-only T-Mobile by 2019 if the carrier can peel legacy clingers
* TCL has own-brand phones, at least two more BlackBerries, and maybe even Palm stuff on the way
* ZTE Axon 7 updated to Android 7.1 in China
* YouTube Users Watch More Than 1 Billion Hours of Video a Day, Will Soon Outpace U.S. TV
* [Video] Watch T-Mobile unbox the LG G6
* Apple to release $1k iPhone with curved screen and USB-C, WSJ says
* Curved OLED iPhone 8 rumors rehashed yet again, new USB-C gossip calls for Lightning exclusion

* Abreu slugs first Sox homer; Giolito debuts
* Giolito: 'A lot to work on' after White Sox debut
* Abreu slugs first Sox homer; Giolito debuts
* Abreu slugs first Sox homer; Giolito debuts
* Moncada flashes defense in first spring start
* Moncada flashes defense in first spring start
* Facing Cubs, Renteria 'really happy' with Sox


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

Archives
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
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




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