Magazine article Global Finance

SEC Kills Chinese-Led Deal to Buy Chicago Exchange

Magazine article Global Finance

SEC Kills Chinese-Led Deal to Buy Chicago Exchange

Article excerpt

The US Securities and Exchange Commission has quashed a proposed $20 million takeover of the Chicago Stock Exchange by a Chinese-led group of investors.

The deal was proposed in February 2016 by Chongqing Casin Enterprise Group, a privately held company specializing in real-estate development and other investments.

The bid was blocked due to a lack of transparency, including an inability to identify who would control the exchange, which would hurt regulators' ability to properly police the exchange.

Even though the exchange handles less than 1 % of US equities trades, the deal was politically sensitive and criticized by lawmakers from both parties, as well as President Donald Trump.

While the administration has taken a tougher stance toward China in terms of national security, this move had more to do with the Chinese government's lack of reciprocity in what it lets the US financial-services industry do in China. …

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