Posted on 10/01/2011 3:06:21 PM PDT by re_tail20
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.
Both exchange operators remain in talks with Illinois and city officials, with discussions about relocating some functions seen by observers as an effort to provide leverage in winning concessions.
"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."
He declined to identify the states to which he is talking.
CME has held discussions with at least five states, with Florida and Texas seen as frontrunners to lure its headquarters and potentially several hundred staff...
(Excerpt) Read more at nasdaq.com ...
Houston would be perfect.
ROTFLMAO... Ain’t it grand when lefty tax policies backfire right in their face in a very public and visible way.
That’s what’s missing from all those “tax the rich” schemes. What happens when they leave? Or when they decide not to be rich anymore?
Tampa would be great too!
They could move to NW Indiana and the employees wouldn’t have to relocate. Merrilville is far enough away from Gary to be quite inhabitable.
Got to derail that dream act thingy accusations hey Ricky?
Whoops, above post was intended for Perry’s invasion of Mexico thread.
Indiana has often thought that copying Illinois is a good idea.
Houston is nice this time of year. Dallas works too.
Caterpillar and ITW ought to do the same thing.
Government is already the biggest employer in Chicago. If the exchanges take their high-paying jobs and infrastructure elsewhere, the Windy City is toast.
That’s pretty funny. First Obama loses them the Chicago Olympics. Then they lose the planned Chicago Cap and Trade Exchange. Now they may lose the CBOE.
Less than a year ago, Chicago was planning to take over from New York as the financial capital of the world. Hmmm. Things aren’t exactly going their way. Mayor Daley had to step down, and I dunno if the new head guy is doing much better.
Ill. don’t need no stinkin oil, Ill. don’t need no stenkin revenue, and no stenkin jobs.
...the exchange formerly known as the Chicago Board Options Exchange?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.