Today's Coming Crisis Movie

Friday, July 29, 2011

CME Group calls tax situation in Chicago 'untenable;' says it may exit state

CME Group Inc. is evaluating whether to move some operations to other states from Chicago to reduce its taxes, but it has not decided on an exact timeline, CEO Craig Donohue said Thursday.

"Our tax situation is untenable," Donohue told Reuters, noting that CME is taxed more heavily than any of its global competitors. The company is talking with at least three states -- Texas, Florida and Tennessee -- about relocating some of its business to take advantage of lower tax rates there, Donohue said.

CME has been based in Chicago since the founding of its oldest market, the Chicago Board of Trade, in 1848.

CME has no specific time frame for moving, Donohue said, and does not plan to shut its Chicago-based trading floor. But he said the possibility of moving other operations is real.

"I don't think CME group is different from other companies" that relocate to more "hospitable" business environments, he said. (more)