Remnant of 143-year-old Chicago Stock Exchange is bound for Texas

We break down complex business news to help you understand how money moves in Chicago and how it affects you.

There was a time in Chicago when the city’s stock exchange was brawny enough to occupy a building that spanned a major downtown thoroughfare.

Not anymore, though. And soon, what remains of the Chicago Stock Exchange will be history.

The New York Stock Exchange owns what’s left of the equities marketplace. The NYSE has announced it will move it to Dallas and reincorporate it as the NYSE Texas.

The NYSE bought the Chicago exchange in 2018 and rebranded it to NYSE Chicago. For years, it has been a fully electronic trading center, without the need for a raucous floor that used to define such daily dealing.

The Chicago Stock Exchange dates from 1882 and drew listings from industrial firms, railroads and the like. It merged with other cities’ exchanges over the years and for a time used the name Midwest Stock Exchange.

In 1985, it moved into a five-story building that still straddles Ida B. Wells Drive, where traffic connects to the Eisenhower Expressway. But now the exchange is barely a blip in Chicago or national commerce.

Its business declined as technology forced rapid changes in trading. It got a $20 million cash infusion from four investment banks in 2006 but financial losses continued. In 2016, it tried to sell a stake to Chinese investors, but federal regulators objected to foreign influence on an American exchange.

It generally accounts for less than 0.5% of daily equities trading, according to data posted by the Nasdaq Stock Market. It has sought a niche from hedge funds and others interested in high-speed executions.

The NYSE said it will file for regulatory approval of the Texas move soon, without being specific. It said the move will not affect trading firms’ access to the exchange.

The move is intended to capture business connected to companies in the Southwestern United States.

Lynn Martin, president of NYSE Group, said Texas is the state with the largest number of NYSE listings.

She praised the Lone Star state for its “business-friendly regulatory agenda.” Texas Gov. Greg Abbott made similar points in celebrating the move, saying in a statement, “Texas is the most powerful economy in the nation, and now we will become the financial capital of America.”

The move intensifies competition with a group that filed for regulatory approval of a new trading venue based in Dallas, the Texas Stock Exchange.

An NYSE spokeswoman declined to comment on Chicago jobs affected by the relocation. When the NYSE bought the Chicago Stock Exchange, Crain’s Chicago Business said 80 jobs were involved.

NYSE is part of Atlanta-based Intercontinental Exchange, known as ICE, which will continue to have a Chicago office at 353 N. Clark St. ICE also owns futures and options exchanges, making it a huge rival for CME Group and CBOE Global Markets, still Chicago’s standard-bearers in world markets.

For ICE Chairman Jeffrey Sprecher, moving the Chicago exchange could involve payback. In 2007, Sprecher made a splash by trying to buy the Chicago Board of Trade from under the nose of the Chicago Mercantile Exchange. But local traders and others who held sway resisted his pitch and completed an $11.9 billion all-Chicago deal.



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