Part of me wishes that the city of Shitcago would pass a transaction tax just to see the CBOE and Merc give the bird to the city and the scum politicians who ruined it. Then the rest of us could follow up with a big I told you so. La Salle Street is a ghost town and these morons want to "reimagine" ( Code for we're going to really screw this up) La Salle St. Translation, government subsidized public housing. Will the last person to leave Shitcago please turn the lights off, the city is toast!
I’ll date myself here. I had clients on the CBOT, CBOE, and CHX. I spent time on all 3 floors, sometimes daily, and saw the CHX when it was probably at its peak. Lots of people worked there when the floor was still open. I’m surprised it took this long to move out Illinois, and was also surprised that there were still 80 employees in Chicago. I also interacted with the OCC regularly because most of my time was spent on the CBOE.
Most people in Chicago have no idea of the large trading firms in Chicago not named Citadel that employed many people in high paying jobs. Trading firm money was everywhere in Chicago if you knew the players. It’s a huge loss to the economy when firms like Citadel, another of my clients, left town.
I’m guessing that every exchange and every large trading firm has contingency plans in place to move out of Chicago when necessary. My old client Peak6, whose office is in the original CBOT floor space with the large rectangular windows facing LaSalle Street moved their HQ to Austin but still has their CBOT office, I believe. When I left LaSalle Street in 2019 you would almost never see someone wearing a trading jacket around the CBOT, which would have been unthinkable 10 years prior.
In an electronic market, especially post-RegNMS-exchange location is irrelevant for trade execution. Listings are somewhat different. The TXSE was set up by institutional investors (including Chicago emigre Citadel) primarily to attract listings on the theory that more corporations will move their incorporation to Texas. ICE is "moving" CSX to compete for that business. Also some trading firms are operating out of TX and moving CSX may attract some order flow from those firms.
The CME, which merged with the Chicago Board of Trade (CBOT) in 2007, sold the CBOT building in 2012. It rents office space in the building. It has a lease on one separate trading floor, I do not know the details
The CBOE started out in the CBOT building and moved into their own building in 1984(?), across the street from the CBOT. CBOE moved their corporate offices to the old Chicago Post Office, two blocks west. Their trading floor, which handles Index, VIX and a few other products is now in the CBOT building. They finally sold their building last year. Their trading floor and corporate offices are leased.
So here is the key: if there is a transaction tax in Chicago, both entities could be out of there in a heartbeat. The Marxist Mayor wants a transaction tax. The large Illinois Governor knows this would end trading in Chicago within a week so he opposes it. The state has veto power on a Chicago transaction tax.
Nothing Burger from a Stock Market perspective makes sense.
However, its another indication about the wonderful business, political, and cultural mishegoss in Chicago and Illinois. We know first-hand by being ex-Chicagoans. Used to be the best large city in the country to live, work, play, and be... now its losing and getting worse than Detroit. Just Sayin.....
Taxes are only bad if you don't get good value for them. On the cost/service matrix Chicago is in the Hi/Low quadrant, the worst possible place. I don't know how people of Texas view the quality of their services. The Low/Low quadrant is probably not a good place either as high earning people want high services.
From the 30,000 ft view it is just further evidence of the deterioration of the overall climate in the city of Chicago and the obvious move of not just population, but also power to the Southern United States and especially to states that are not dominated by big cities with Democrat mayors, which so many of us have just become sick and tired of being penalized by being a part of for so long.
It’s funny that just a few years ago waste, fraud, and abuse in the federal budget was written off as something small that didn’t matter. Now it appears that the whole government budget is one big scam and that ending waste, fraud, and abuse can make a huge difference. DOGE for the win!
Part of me wishes that the city of Shitcago would pass a transaction tax just to see the CBOE and Merc give the bird to the city and the scum politicians who ruined it. Then the rest of us could follow up with a big I told you so. La Salle Street is a ghost town and these morons want to "reimagine" ( Code for we're going to really screw this up) La Salle St. Translation, government subsidized public housing. Will the last person to leave Shitcago please turn the lights off, the city is toast!
You know that as soon as they pass a transaction tax the CME will be gone in a heartbeat, the same with the CBOE.
I’ll date myself here. I had clients on the CBOT, CBOE, and CHX. I spent time on all 3 floors, sometimes daily, and saw the CHX when it was probably at its peak. Lots of people worked there when the floor was still open. I’m surprised it took this long to move out Illinois, and was also surprised that there were still 80 employees in Chicago. I also interacted with the OCC regularly because most of my time was spent on the CBOE.
Most people in Chicago have no idea of the large trading firms in Chicago not named Citadel that employed many people in high paying jobs. Trading firm money was everywhere in Chicago if you knew the players. It’s a huge loss to the economy when firms like Citadel, another of my clients, left town.
I’m guessing that every exchange and every large trading firm has contingency plans in place to move out of Chicago when necessary. My old client Peak6, whose office is in the original CBOT floor space with the large rectangular windows facing LaSalle Street moved their HQ to Austin but still has their CBOT office, I believe. When I left LaSalle Street in 2019 you would almost never see someone wearing a trading jacket around the CBOT, which would have been unthinkable 10 years prior.
In an electronic market, especially post-RegNMS-exchange location is irrelevant for trade execution. Listings are somewhat different. The TXSE was set up by institutional investors (including Chicago emigre Citadel) primarily to attract listings on the theory that more corporations will move their incorporation to Texas. ICE is "moving" CSX to compete for that business. Also some trading firms are operating out of TX and moving CSX may attract some order flow from those firms.
The CME, which merged with the Chicago Board of Trade (CBOT) in 2007, sold the CBOT building in 2012. It rents office space in the building. It has a lease on one separate trading floor, I do not know the details
The CBOE started out in the CBOT building and moved into their own building in 1984(?), across the street from the CBOT. CBOE moved their corporate offices to the old Chicago Post Office, two blocks west. Their trading floor, which handles Index, VIX and a few other products is now in the CBOT building. They finally sold their building last year. Their trading floor and corporate offices are leased.
So here is the key: if there is a transaction tax in Chicago, both entities could be out of there in a heartbeat. The Marxist Mayor wants a transaction tax. The large Illinois Governor knows this would end trading in Chicago within a week so he opposes it. The state has veto power on a Chicago transaction tax.
So don’t expect a Chicago transaction tax.
what happens when the large gov isn't there?
Allstate is gone from Northbrook. Now truck terminals and warehouse space
Actually they moved across the street and are in Glenview in a much smaller building.
Jeffrey,
Nothing Burger from a Stock Market perspective makes sense.
However, its another indication about the wonderful business, political, and cultural mishegoss in Chicago and Illinois. We know first-hand by being ex-Chicagoans. Used to be the best large city in the country to live, work, play, and be... now its losing and getting worse than Detroit. Just Sayin.....
Texas has a lot going for it, but I’ll add bad energy policy (electricity generation, not oil production) to the list of the state’s downsides.
Taxes are only bad if you don't get good value for them. On the cost/service matrix Chicago is in the Hi/Low quadrant, the worst possible place. I don't know how people of Texas view the quality of their services. The Low/Low quadrant is probably not a good place either as high earning people want high services.
Seems like people like the quality of their service. Texas isn't losing people
OK, so people will need to stop complaining about the high property taxes, or restructure them to a different mix of sources.
From the 30,000 ft view it is just further evidence of the deterioration of the overall climate in the city of Chicago and the obvious move of not just population, but also power to the Southern United States and especially to states that are not dominated by big cities with Democrat mayors, which so many of us have just become sick and tired of being penalized by being a part of for so long.
given the graft and grift we are being exposed to, why are we paying taxes?
It’s funny that just a few years ago waste, fraud, and abuse in the federal budget was written off as something small that didn’t matter. Now it appears that the whole government budget is one big scam and that ending waste, fraud, and abuse can make a huge difference. DOGE for the win!