Chicago Stock Exchange Says It's Being Sold to Chinese-Led Group

[Purveyor]

Source: Bloomberg

The Chicago Stock Exchange said a Chinese investor group agreed to acquire it, giving the buyer entry into the intensely competitive U.S. equity market.

Chongqing Casin Enterprise Group has signed a definitive agreement to acquire the company, according to a statement Friday. The deal values the Chicago Stock Exchange at less than $100 million, according to a person familiar with the matter, who asked to not be identified because the terms weren’t disclosed publicly. The exchange expects the deal to close in the second half of the year, though that will require regulatory approval.

“We’re a good fit. Our strategy is something they like and is consistent with theirs,” Chicago Stock Exchange Chief Executive Officer John Kerin said in a phone interview. “We provide technology and we’re a standalone, full-service exchange that they can grow in a manner that suits their needs.”

The acquisition would be the first of a U.S. exchange by a Chinese company. The 134-year-old bourse only handles about 0.5 percent of U.S. stock trading, but a deal gives a buyer a beachhead in the $22 trillion American equity market. There’s also the potential for growth given that regulations require trades to be routed to whichever exchange has the best price for a stock at a given moment.

Political Objections

Read more: http://www.bloomberg.com/news/articles/2016-02-05/chicago-stock-exchange-says-it-s-selling-to-chinese-led-group

[Melissa G]

1. Wow! How is this even legal? n/t

[Ed Suspicious]

2. That seems really fucked up.

[houston16revival]

3. We've sold turnpikes and everything else

Foreign companies and people are buying our income streams.

Have we no laws, no expertise, no spine left?

[Ferd Berfel]

4. From Reagan thru and including Obama US Administrations have been selling us out

Bernie is the only hope of reversing this suicidal direction

[Hassin Bin Sober]

5. This isn't Borowitz?

[michaz]

6. Chinese bought buildings and land in my small city in upstate NY.

This city is a very small city of around 10,000-11,000, if that. We are located on the Canadian border. Their purchase of a once small college campus was for them to teach English to Chinese students they were going to bring over. They then began to purchase other properties, a nursing home, a restaurant and many homes located just outside the city that had a lot of acreage. They wanted to build homes for the parents of these students. The long and short of it is this: the state ended up not allowing this to happen but to be honest I am not sure of all the particulars on that. They ended up selling the restaurant and do have some property up for sale now. But not all of it. When they purchased all these properties they paid a lot of money, much more than any one else would have paid. Of course the local real estate agency seemed to be the same one for all these transactions. They made out well. Our Senator thought this was wonderful. Many of us did not. Some of these properties these Chinese investors purchased are empty and some are being rented. It made no sense to me then and it makes no sense to me now. There have been no benefit of jobs since nothing materialized. his was the start of it all: http://www.wwnytv.com/news/local/Hong-Kong-Investor-128097963.html

[Midnight Writer]

7. Another victory for unfettered capitalism and free trade! Go! Go! USA!

[proverbialwisdom]

8. More.

http://www.independent.co.uk/news/business/news/chinese-investment-group-set-to-purchase-chicago-stock-exchange-a6857971.html

https://en.wikipedia.org/wiki/Chicago_Stock_Exchange
http://www.motherjones.com/politics/2013/02/high-frequency-trading-danger-risk-wall-street