Other investors in the buyers' group had agreed to purchase those stakes. Chinese ownership could permit Beijing to “breach personal and business data.”. “This was good for us; it was good for the city; it was good for the United States,” Kerin said. Analysis Trader's Blog Commentary Stock of the Week. In a document posted on the SEC's website Thursday, the regulator said the deal did not comply with U.S. rules governing stock exchanges. The Chicago Stock Exchange couldn't supply documents the regulator requested about relationships among the proposed buyers, according to the SEC. John Kerin, CEO and president of the Chicago Stock Exchange, expressed disappointment in the decision from the Securities and Exchange Commission, but he said the $20 million deal may move forward without the Chinese investors. What is ballot harvesting — and should you hand your ballot to a stranger? CME Group legend Leo Melamed, who modernized Chicago trading, is retiring: 'Risk was really a part of my being'. For those up in arms over Friday's news that the Chicago Stock Exchange, a 134-year-old bastion of American capitalism, has agreed to sell itself to a Chinese investor group: Simmer down. A unit of Germany's Deutsche Boerse AG. It’s bad enough that the acquirers apparently tried to mislead the SEC. In 2015, Companies and investors in China spent more than $110 billion on overseas mergers and acquisitions, an 86 percent increase over the previous year and a record for the People's Republic, according to Mergermarket. See here for a complete list of exchanges and delays. Casinos, soft play, betting shops, car boot sales and pubs and bars not serving meals will close. Battleground Tracker: Tight race in Florida, Georgia, North Carolina, CBS News/BET poll: Black voters motivated, but concerned about votes counting, The pivotal post-Election Day dates you need to know, A behind-the-scenes look at how mail-in ballots are processed. It’s not hard to see why the SEC reached that conclusion. A year ago, the sale was cleared by a panel that reviews foreign takeovers for national security threats. Also earlier this year, the US also blocked a $1.2bn (£880m) sale of money transfer firm Moneygram to China's Ant Financial, the digital payments arm of Alibaba. “I'm not too surprised,” Richard Johnson, an analyst at Greenwich Associates, said of the rejection. What you don’t know about Transfer Pricing can hurt you! NYSE Chicago is a fully-electronic equities exchange with unique features to support the Institutional Brokers serving the exchange-traded derivatives community. / CBS/AP. The remaining 60 percent was to be divided among a number of U.S.-based investors, including five members of the CHX Holdings management team, who were going to take about an 8 percent stake in the company collectively. No purchase price was disclosed. or redistributed. No Chinese company could demonstrate independence these days due to Beijing’s tightening control, so allowing access to the America’s financial backbone looks exceedingly dangerous. Read about our approach to external linking. The SEC has rejected a Chinese consortium's bid to buy the Chicago Stock Exchange. The exchange had hoped to address that situation by selling itself, while also creating a conduit to China. News provided by The Associated Press. For one thing, CHX was not a particularly attractive investment. A long-term objective of Casin Group, a privately held company that invests in real estate development and financial holdings, is to list Chinese companies in the United States, Kerin said. Said John Kerin, CHX’s CEO, “We are confident this will address any concerns the Commission may have had about the ownership composition.”. John Kerin, CEO of the Chicago Stock Exchange, will remain in the job. (Reuters) - Chicago Stock Exchange Inc, one of the oldest exchanges in the United States, on Friday announced its planned sale to an investor group led by China’s Chongqing Casin Enterprise Group. Two Chinese entities, Chongqing Jintian Industrial Co. and Chongqing Longshang Decoration Co., left the consortium along with U.S.-based Xian Tong Enterprises. First, Beijing could gain technical information about infrastructure weaknesses should it cyberattack the markets. Video, 'My sister lives on in a video game' Video, Covid-19: West Yorkshire to go into tier 3 from Monday, Body found in search for missing Team GB runner Chris Smith, Third body found in hunt for Coventry double murder suspect, Labour suspends Jeremy Corbyn over reaction to anti-Semitism report, Covid-19: Tier news for millions in England and Scotland, and Bobby Ball dies, Borat fundraiser for film's black grandmother raises $110,000, France attack: Three killed in 'Islamist terrorist' stabbings. Late Thursday, the Securities and Exchange Commission issued a notice announcing it did not approve the proposed acquisition of the 136-year-old Chicago Stock Exchange by a Chinese-led consortium. The Associated Press contributed to this report. “Why on earth would we think that allowing them to control a U.S. exchange is in our interest?” Wessel asks. Plans call for CHX’s management and business operations to remain in place. The Commission also noted that there were “potential undisclosed connections between purportedly unrelated members of the investor consortium.”, These connections are important because, as the Commission pointed out, “upstream owners” might be able to “exercise undue influence over the Exchange.”, To facilitate approval, three members of the acquisition group dropped out, according to an announcement last November. Legal Statement. NEW YORK - In a sign of China's expanding financial reach, a Chinese-led investor group is buying the 134-year-old Chicago stock exchange. “They didn't need to buy a stock exchange to do that necessarily, so that motivation was a little unclear.”. China just moved a step closer to acquiring one of America’s oldest stock exchanges, despite security concerns raised by some in Congress. CHICAGO–(BUSINESS WIRE)–The Chicago Stock Exchange, Inc. (CHX) is pleased to announce that it has entered into a definitive agreement to be acquired by an investor group led by Chongqing Casin Enterprise Group (the “Casin Group”). We’ll have to see what this investment group does going forward.”. Here are the barriers, Texas facility now holding soon-to-be expelled migrant families, Woman beheaded and 2 others killed in knife attack at French church, Zeta races through Southeast with strong winds, Pelosi on Trump: "What century is he living in? Our Standards: The Thomson Reuters Trust Principles. A unit of Germany's Deutsche Boerse AG DB1Gn.DE purchased the International Securities Exchange in 2007. All rights reserved. Powered and implemented by FactSet. In the meantime, what happens when another Chinese group comes along to buy CHX? The exchange is a national securities exchange and self-regulatory organization, which operates under the oversight of the U.S. Securities and Exchange Commission (SEC). Together, they'd planned to buy 36.44 percent of the exchange. The 134-year old bourse plans to seek approval to list U.S. companies that want to access the capital markets but may not meet the standards of Nasdaq Inc, The exchange, with locations in Chicago and New Jersey, is mainly used by market makers that buy and sell the most active exchange-traded funds and hedge their positions using futures on CME Group Inc's. Follow him on Twitter. First published on February 5, 2016 / 11:36 AM. ©2020 FOX News Network, LLC. The Chicago Stock Exchange (CHX), established in 1882, is one of the oldest stock exchanges in the United States. Casin’s bid to buy CHX is unlikely to be the last Chinese attempt to control an American exchange. China clears key hurdle to buy Chicago Stock Exchange. The exchange, with locations in Chicago and New Jersey, is mainly used by market makers that buy and sell the most active exchange-traded funds and hedge their positions using futures on CME Group Inc's CME.O Chicago Mercantile Exchange. If regulators approve the deal, this would be the first sale of a U.S. exchange to investors from China but not to a foreign entity. “We’re very disappointed,” Kerin said. .css-14iz86j-BoldText{font-weight:bold;}The US has rejected a proposed merger between the Chicago Stock Exchange and a Chinese-linked investor group. NEW YORK - In a sign of China's expanding financial reach, a Chinese-led investor group is buying the 134-year-old Chicago stock exchange. The 134-year old bourse plans to seek approval to list U.S. companies that want to access the capital markets but may not meet the standards of Nasdaq Inc NDAQ.O or Intercontinental Exchange Inc's ICE.N New York Stock Exchange. On Friday, February 5th, 2016, the exchange announced that it had entered into a “definitive agreement” to be acquired by a Chinese-led investment group. The Chicago Stock Exchange (CHX) is a stock exchange in Chicago, Illinois, US. Watch live: Gov. The Chicago Stock Exchange is located at 440 South LaSalle Street (FOUR40) in Downtown Chicago. The longtime CME chairman emeritus is a futures trader, lawyer, government adviser, sci-fi author, former Yiddish-speaking theater performer and cat person. The exchange said the deal is expected to close in the second half of the year and needs to be approved by the U.S. Securities and Exchange Commission. .css-8h1dth-Link{font-family:ReithSans,Helvetica,Arial,freesans,sans-serif;font-weight:700;-webkit-text-decoration:none;text-decoration:none;color:#FFFFFF;}.css-8h1dth-Link:hover,.css-8h1dth-Link:focus{-webkit-text-decoration:underline;text-decoration:underline;}Read about our approach to external linking.