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from the At-least-the-TLA-wouldn't-have-changed dept.
US rejects China-led bid for Chicago Stock Exchange
The US has rejected a proposed merger between the Chicago Stock Exchange and a Chinese-linked investor group. The decision comes after more than two years of reviews by officials.
The tie-up was initially approved by the Committee on Foreign Investment in the United States, pending further approval by the Securities and Exchange Commission (SEC). But US politicians, including President Trump, have said letting a Chinese firm invest in a US exchange was a bad idea.
Under the proposal, the Chinese-led North America Casin Holdings group would have bought CHX Holdings, which owns the Chicago Stock Exchange. The exchange, which handles just 0.5% of US stock trades, had said the deal would have provided the exchange with "vital capital". That funding would have been used "to boost numerous initiatives designed to benefit the city of Chicago, the US economy and market structure as a whole".
Also at Bloomberg, NYT, Reuters, and CNN.
(Score: 2) by frojack on Saturday February 17 2018, @07:09PM (2 children)
Owning the exchange (which is a pretty small exchange after all) would not bring money into the neighborhood.
Don't confuse CHX with the CME ("The Merc"), which is the big (world wide) player in Chicago.
Especially since the proposed buy was designed to move control and investment off shore to China.
But mostly it was a camel nose under the tent operation from the get go, which nobody thought would ever be allowed anyway.
No, you are mistaken. I've always had this sig.
(Score: 2) by JoeMerchant on Saturday February 17 2018, @08:15PM (1 child)
I'm guessing the sellers of the small exchange are from the local neighborhood, and granted they may just use it all to buy new yachts in the Caribbean, but they might also sprinkle a little around the neighborhood, even philanthropically.
Not that I'm in favor of letting the camel's nose in, but it would be a pile of cash transferring from China to whoever is selling.
🌻🌻 [google.com]
(Score: 4, Interesting) by frojack on Saturday February 17 2018, @11:33PM
There's no evidence a change in ownership would bring even a single dollar to Chicago.
Chances are the big boys in the CHX don't live there anyway, and they would sell their mansions (at a huge profit) and move someplace else if they did. (Everybody want's out of Murder City these days).
The exchange would bumble on as it had before, probably with less staff or lower wages when the Chinese get done installing their homeboys and getting rid of any upper management types.
There was a time when any aspiring city had a Stock Exchange. https://en.wikipedia.org/wiki/List_of_former_stock_exchanges_in_the_Americas [wikipedia.org]
That was before modern networks. There is little reason for the CHX to exist at all any more, but to the extent it has connections to other exchanges it would have been a perfect mask to cover tracks while slipping trades into the more mainstream exchanges.
No, you are mistaken. I've always had this sig.