I guess NYSE feels operating 2 exchanges in the same region (Midwest) is unnecessary expense.

There’s plenty of confusion on my part as to the exact purpose of a NYSE branch.

I thought it was to pre-empt the effort by some shady TX folks from setting up their own exchange (TSE). But, I don’t think that’s the case.

It doesn’t seem to matter if you “list” at NYSE Chicago or NYSE. It will still be available for sell/buy in NYSE. Thus these companies still under regulatory oversight and mandatory reporting of NYSE.

The NYSE Chicago branch, to me, is just a convenient place to buy/sell securities listed on NYSE. In the pre-digital age, this makes sense. No need to go to NYC or establish relationships in NY, but can deal locally at the NYSE branch and get the same rates. But in this modern age, the exact purpose eludes me.

I did find this on the Wiki page:

> In 2016, CHX rolled out its on-demand auction product, CHX SNAP[20] (Sub-second Non-displayed Auction Process), which received regulatory approval[21] from the Securities and Exchange Commission in October 2015 and a thorough review from the Federal Reserve Bank of Chicago. CHX SNAP is designed to facilitate bulk trading of securities on a lit market and to minimize speed and information advantages enjoyed by only a few market participants.

Perhaps plan is to rollback some protections and give more advantage to the much more wealthier market participants?

There is no such thing as a “Chicago Branch” in this case. This is purely a corporate legal move.

I’d be surprised if they moved the matching engine out of mahwah.

Chx/nyse chicago has never really caught on as a venue as it didn’t have much to distinguish it from the pack of second tier exchanges. Especially given cboe local dominance.

It’s mostly a marketing move to take advantage of the pro-Texas stuff that has been swirling lately.

Because Chicago is becoming more and more irrelevant as a place to do business. Great city but decades of bad management adds up unfortunately.

That is patently false and nothing but rhetoric. Chicago has been consistently number 1 or top 5 for corporate (inbound) relocations over the past decade. Doesn’t fit the narrative so you might doubt me, google it. NYSE bought the CHX in 2018 which was nearly defunct in terms of volume even then for access to its SEC license. They are posturing to ensure if Texas based exchanges take hold they are a part of the story vs letting the incumbent Texas Stock Exchange win that market uncontested. Time will tell if either exchange gets traction toward relevance or if this fizzles out entirely as the Chicago based exchange was doing.

That’s not why this exchange is getting moved but nice hot take.

The exchange struggled with the transition to electronic trading 20+ years ago and never recovered. My firm stopped tracking volume from CHX over a decade ago because it’s essentially irrelevant.

The current owners, ICE, have been sitting on it since they purchased it and this is an easy way to open an exchange to rival the Texas Stock Exchange without applying for a brand new license.

Chicagoans are not dumb enough to list on a local exchange these days, over the NYSE. Texans, though?

It’s cute that you think stock exchanges are only used by people who live in that city.

The problem with NYSE Chicago, formerly the Chicago Stock Exchange, was not that it was in Chicago, but that it was not liquid. CBOE operates four equity exchanges, formerly operated by BATS, which was based in Lenexa, Kansas of all places. From what I've read, the value of NYSE Chicago is simply in the exchange license. NYSE bought it when it was the Chicago Stock Exchange in 2018, when it was already an illiquid skeleton of an exchange.