DerekfrmSA
Dec 8, 2003, 2:58 AM
http://news.mysanantonio.com/story.cfm?xla=saen&xlb=110&xlc=1094885
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S.A. wants a piece of Chicago action
By Melissa S. Monroe
Express-News Business Writer
Web Posted : 12/06/2003 12:00 AM
City officials are working diligently to lift San Antonio's profile as a financial services sector by luring a branch of the Chicago Stock Exchange.
Similar to the chaos that happens daily on Wall Street's New York Stock Exchange with brokers and traders yelling back and forth, local officials say that scene can be duplicated here, but more quietly.
"By no means is this a done deal," said Ramiro Cavazos, San Antonio's economic development director. "It's a long shot, but we have folks dreaming big and it's time to start now to bring a strong financial services industry in San Antonio where it's presently a thin layer."
The presence of SBC Communications in San Antonio and the push from city leaders are major reasons to have a trading floor, according to Chicago Exchange officials.
"People have to sit somewhere," said Chicago Exchange Vice Chairman Andrew A. Davis. "Even as we go more electronic, we still employ people. Computers are good for transmitting information, but not much when it comes to judgment."
Rather than having all the economic opportunity in Chicago, Davis said, the exchange could bring jobs to San Antonio with a trading floor.
Davis said he wouldn't have made several trips to San Antonio if he didn't think this could happen.
With SBC's large pension assets, Cavazos said, a trading floor located in San Antonio would be more convenient for the telecommunications company.
The technologically advanced Chicago Exchange lists stocks of corporations in its geographic region and is registered with the Securities and Exchange Commission.
Besides Chicago, the major U.S. regional exchanges are the Boston, Cincinnati, Pacific and Philadelphia stock exchanges. Regional exchanges are usually significantly smaller than exchanges that focus on listing stocks at the national level.
Exchange branches are typically unheard of, Davis said, but because the Chicago exchange is technologically more advanced than the other exchanges, it allows the Chicago group to move its services to other cities.
But the strategy seems odd to some experts.
"This is so wacky," said Jay Taparia, principal of Sanskar Investments in Chicago and professor of finance at the University of Illinois at Chicago.
While having a financial center in Texas might make sense, Taparia said, incorporating an exchange branch is unusual thinking, since it's small compared to the powerhouses like NYSE or the American Stock Exchange.
San Antonio City Councilman Art Hall, who couldn't be reached by press time, has been spearheading the process with other city officials and the financial community. Hall's office released a statement Thursday supporting efforts for a Chicago branch.
Robert V. Rodriguez, owner of San Antonio-based Southwestern Capital Markets Inc., said the planning for this has been in the works during the last six months. The Book Building on Houston Street, where Southwestern Capital Markets' offices are, could be a possible location for the exchange, he said.
Southwestern Capital, the first local Hispanic investment-banking firm, was the second San Antonio company to buy a seat on the Chicago Stock Exchange in August for $28,000. Just seven Texas companies, including Southwestern and USAA, own seats on the 450-seat exchange.
A San Antonio committee, Rodriguez said, will visit the Chicago Exchange in mid-January in hopes of making a trading floor in the Alamo City a reality.
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S.A. wants a piece of Chicago action
By Melissa S. Monroe
Express-News Business Writer
Web Posted : 12/06/2003 12:00 AM
City officials are working diligently to lift San Antonio's profile as a financial services sector by luring a branch of the Chicago Stock Exchange.
Similar to the chaos that happens daily on Wall Street's New York Stock Exchange with brokers and traders yelling back and forth, local officials say that scene can be duplicated here, but more quietly.
"By no means is this a done deal," said Ramiro Cavazos, San Antonio's economic development director. "It's a long shot, but we have folks dreaming big and it's time to start now to bring a strong financial services industry in San Antonio where it's presently a thin layer."
The presence of SBC Communications in San Antonio and the push from city leaders are major reasons to have a trading floor, according to Chicago Exchange officials.
"People have to sit somewhere," said Chicago Exchange Vice Chairman Andrew A. Davis. "Even as we go more electronic, we still employ people. Computers are good for transmitting information, but not much when it comes to judgment."
Rather than having all the economic opportunity in Chicago, Davis said, the exchange could bring jobs to San Antonio with a trading floor.
Davis said he wouldn't have made several trips to San Antonio if he didn't think this could happen.
With SBC's large pension assets, Cavazos said, a trading floor located in San Antonio would be more convenient for the telecommunications company.
The technologically advanced Chicago Exchange lists stocks of corporations in its geographic region and is registered with the Securities and Exchange Commission.
Besides Chicago, the major U.S. regional exchanges are the Boston, Cincinnati, Pacific and Philadelphia stock exchanges. Regional exchanges are usually significantly smaller than exchanges that focus on listing stocks at the national level.
Exchange branches are typically unheard of, Davis said, but because the Chicago exchange is technologically more advanced than the other exchanges, it allows the Chicago group to move its services to other cities.
But the strategy seems odd to some experts.
"This is so wacky," said Jay Taparia, principal of Sanskar Investments in Chicago and professor of finance at the University of Illinois at Chicago.
While having a financial center in Texas might make sense, Taparia said, incorporating an exchange branch is unusual thinking, since it's small compared to the powerhouses like NYSE or the American Stock Exchange.
San Antonio City Councilman Art Hall, who couldn't be reached by press time, has been spearheading the process with other city officials and the financial community. Hall's office released a statement Thursday supporting efforts for a Chicago branch.
Robert V. Rodriguez, owner of San Antonio-based Southwestern Capital Markets Inc., said the planning for this has been in the works during the last six months. The Book Building on Houston Street, where Southwestern Capital Markets' offices are, could be a possible location for the exchange, he said.
Southwestern Capital, the first local Hispanic investment-banking firm, was the second San Antonio company to buy a seat on the Chicago Stock Exchange in August for $28,000. Just seven Texas companies, including Southwestern and USAA, own seats on the 450-seat exchange.
A San Antonio committee, Rodriguez said, will visit the Chicago Exchange in mid-January in hopes of making a trading floor in the Alamo City a reality.