Is a Dime To Much to Ask for Our Kids Future ?

Transaction Revenue fee’s brought in by all 4 Chicago Exchanges CME Group, Chicago Stock Exchange and the Chicago Board of Options I would like to propose a new Idea and a new way to generate revenues by enacting a fee of .10 Cents per transaction on all trades executed on the Chicago’s major Commodity, Stock and Option exchanges as well as their computerized trading platform systems.

 This fee would only be per-transaction, not per share so if you did one share or a billion shares the fee would still only be ten cents. This fee will not hurt the small investors nor the lager investment banking and or trading firms. 

I would also like point out since 9/11 that our exchanges here are constantly being looked at as a target for terrorism and this has added high cost to our city and state budgets for security monitoring to help ward off such attacks with no source to help offset and pay for these ongoing additional cost. These Exchanges were originally set up as non-profit entities but over the past few years have now become for profit enterprises and the jobs that once where there offered people are not available.

 The exchange floors have implemented computerized systems for executing trades and as a result, these firms no longer employ a large staff need the large staff which in return has decreased payroll taxes to the state. Nevertheless, using the computerized systems has helped these firms to keep their profits margins high and their CEO and other top executive bank account’s fat with bonus and profits. These four exchanges combined conduct over 1 billion transaction a month thus giving our state an opportunity to seize around 100 million dollars per-month giving us anywhere from 500 million to over 1 billion dollars of new revenue to our state’s coffers which could go to schools, pensions funding, health care and infrastructure projects which will help bring jobs to the people of Illinois.

 Illinois would be the first State to enact this type of revenue stream but once it is done, other states such as NY or California that have exchanges could potentially copy and follow our (Illinois’) lead. 

The ten cent transaction fee over ten years would increase to $1.00 per transaction not per share  The transaction fee has no mention of the exemptions along with the CME management fee. So just a reminder Floor members, Illinois residents, and Agriculture would be exempted. The CME would collect between a 5 to 10% fee from the fee's they collect via the exchanges. 

 This will allow the State to discontinue the 136 million a year it gives the CME, because they would have a revenue stream of 150 to 500 million dollars a year.