The Real Deal New York

NYSE is looking to buy Chicago exchange

The price on the table for is reportedly $70M
March 31, 2018 08:00AM

Chicago Stock Exchange. (Credit from back: Dan Perry, Arturo Di Modica; Foto von Andreas Horstmann)

The Chicago Stock Exchange could be selling out to New York.

The last independent regional exchange in the U.S. seems to be out of options after its deal with Chinese company North America Casin Holdings fell apart in February due to the Securities and Exchange Commission blocking the sale due to regulatory shortcomings, according to the Wall Street Journal.

After the Chicago exchange announced it was seeking new buyers in early March, the New York Stock Exchange stepped in and reportedly offered over triple the Chinese firm’s price; North America Casin Holdings had been in talks to buy the exchange for $20 million while NYSE is supposedly in talks over a price of about $70 million.

What about the small Chicago exchange, which handles below 1 percent of American stock-trading volume, warrants the high offer? Chicago’s national securities exchange license — the application for which can take years to secure.

NYSE has a track record of buying independent exchanges and relaunching them, and the Journal notes that acquiring the smaller exchange could be a ready-made way to test pricing and financial instruments like cryptocurrency. [WSJ]Erin Hudson