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US declined the merger of Chicago Stock Exchange and China-based investment group

The United States have declined an offer to merge the Chicago Stock Exchange and a China-related investment group. It took over two years of consideration for officials to come up with the decision.

In the beginning the tie-up was greenlighted by the Committee on Foreign Investment in the US, to later go for an approval by the Securities and Exchange Commission.

However, American policymakers, as well as Donald Trump, have criticized the idea, saying that to allow a Chinese company finance a US exchange is not a good move.

The offer intended the China-based North America Casin Holdings group to purchase a minority share of the Chicago Stock Exchange. Only 0.5% of all US stock trades are covered by the exchange, so it said that the move could have given the exchange essential capital.

The financing would have helped to implement a number of initiatives beneficial for Chicago, the economy of the country and market structure.

Though the Securities and Exchange Commission gave a go ahead during the primary vote in August 2017, it in the end decided that the move was not compliant to the regulations of US stock exchanges.

In the course of consideration some other concerns have arisen as well, particularly whether the offered merger would let the commission to carry out due supervision of the exchange, the SEC said.


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