* This has come up as an issue in the gubernatorial campaign…
CME Group Inc. has a message for Illinois legislators who see the $47 billion global derivatives trading giant as a piggy bank to help solve the state’s fiscal woes.
Chief Executive Officer Terry Duffy said that the exchange is less rooted in its historical home of Chicago because it now barely relies on face-to-face dealing in trading pits. CME has no plans to leave the city, he said in an interview Tuesday.
“If you were to whiteboard it today, you probably wouldn’t pick Chicago, and it’s nothing against the city,” he said. “We’re here for legacy reasons, and now that we are here for legacy reasons, it makes complete sense” to stay.
Just last year, politicians went searching for new revenue to fix a budget crisis, with some floating the idea of taxing trades on CME’s exchange. It wasn’t adopted. […]
Enough lawmakers in Illinois — which has the lowest credit rating of any U.S. state — get that taxing CME isn’t the solution, he said. And those who don’t should remember the company isn’t tied down: It’s pared back real estate holdings in the area and the shift to electronic trading means CME could move anywhere. The exchange, more than ever, is a virtual operation currently based in a data center in Aurora, Illinois, just outside Chicago.
The whole interview is worth a read, so click here.