CHICAGO | Economic & Business Development

[Randomguy34]

Would be funny if they had to rebrand as the Illinois Stock Exchange if they move here

Illinois bids for NYSE data hub—but the door may be open to a bigger move

The state of Illinois has put in a formal bid to lure the electronic backbone of the New York Stock Exchange here. And with the NYSE now saying that tax considerations may force it to move its headquarters, too, Illinois is preparing to try to capture the entire operation as well.

In a phone interview, Deputy Gov. Dan Hynes said the Pritzker administration has been in contact with NYSE officials for several months about making the Chicago area the base of the exchange's network of servers, which host the electronic trades that make up most stock transactions today.

That pitch specifically is to expand a site in the western suburbs here that now is the NYSE’s secondary data-center location. The main site currently is in New Jersey, across the Hudson River from Manhattan, but exchange officials have talked about moving it elsewhere since New Jersey began considering a possible transaction tax on all trades.

Hynes said Illinois officials contacted NYSE after the New Jersey tax news broke in September, with Gov. J.B. Pritkzer and an official from Intersect Illinois, the state’s corporate recruitment arm, personally meeting with an exchange search committee to pitch Illinois for the electronic hub. At least a few other states are believed to also be competing, including Texas as well as Georgia, home of NYSE owner Intercontinental Exchange.
....
Luring even the NYSE server operation here “would strengthen Illinois’ reputation as a global financial center,” Hynes said. NYSE’s facility here “already is one of the largest data centers in the state,” he added. Construction would create hundreds of construction jobs, with permanent jobs also likely hitting some hundreds. Hynes declined to give odds on Illinois’ chances, saying only that the NYSE search committee “seemed impressed.”

A spokesman for NYSE did not immediately respond to a request for comment. Though trading is much more dispersed today than in the past, NYSE still is the largest exchange in the world in terms of the total capitalization of companies listed on it, more than twice as big as its nearest competitor.

https://www.chicagobusiness.com/greg-hin...aign=20210210&utm_content=idio-headline1

[the urban politician]

^ Nice, but it would be a symbolic move at best, as all trading is pretty much electronic

[marothisu]

Originally Posted by the urban politician

^ Nice, but it would be a symbolic move at best, as all trading is pretty much electronic

Nah. Switching over the data center to be primary in Illinois would actually most likely bring some new trading jobs to Chicago. When you are doing high frequency trading, prop trading, etc ..mere milliseconds matter a lot. It would definitely bring some jobs.

NYSE moving from New York to Chicago would definitely be symbolic but that's a pretty crazy move. There would still be probably some jobs coming out of it.

[the urban politician]

It would be strange for NYSE to do that, with “New York” in its name. But something like that is far from unheard of.

[marothisu]

Originally Posted by the urban politician

It would be strange for NYSE to do that, with “New York” in its name. But something like that is far from unheard of.

For sure. And I doubt they'd change it but it would be weird. Also, Chicago having CBOE, CME, CBOT, and NYSE sends a very strong f'ing message.

I doubt ny would let nyse leave, but stranger things have happened.

[left of center]

Wow this is crazy news. Amazing if it happens!

Taxing trades is something that politicians in Chicago and IL have proposed in the past as well, but thankfully never got any traction. I hope that doesn't potentially scare the NYSE from picking us.

I think our stiffest competition would come from Atlanta, where Intercontinental Exchange (owner of the NYSE) is located. Otherwise, we got a lot going for us. Existing financial exchanges, robust fiber backbone, a deep financial labor pool, and Aurora already hosting some of the most widely used data centers for financial trades, right behind Secaucus, NJ which the NYSE is looking to dump.

[the urban politician]

^ Our biggest competition is New York

Trust me, in the end NYC will not let NYSE leave

[UPChicago]

Wow if that happens it would add a new dimension to the concept of geographic advantage as much of the nation's fiber optics follow the path of railroad routes.

[marothisu]

Originally Posted by the urban politician

^ Our biggest competition is New York

Trust me, in the end NYC will not let NYSE leave

They definitely won't move the HQ and I'll be stunned if they do. Their threats are a tactic for NY and NJ to not implement certain taxes.

The data center though? That could move, and competitively in tech for traders that's actually what matters. You'd probably see some trading firms without a Chicago office open in Chicago if they made the Aurora site primary instead of Secaucus, NJ.

HQ though? I'll be stunned if it moves out of NYC.

[Chi-Sky21]

Well at least Cyrus One could build out their 2nd building then. Be good for their bottom line.

[marothisu]

Software firm Copado raises $96 million

https://www.chicagobusiness.com/john-pletz-technology/software-firm-copado-raises-96-million

Copado, a fast-growing Chicago software maker, has raised $96 million in a deal led by venture fund Insight Partners and Salesforce Ventures.

The company, founded in Madrid headquartered in Chicago since 2018, makes software tools for developers at companies that use Salesforce’s cloud software.

..

Copado says its customer base grew from 200 to more than 1,000 in the past year and revenue more than doubled, though it declined to disclose specific financials.

..

The company has 220 employees globally, including 40 in Chicago, where Salesforce has a sizable operation. Salesforce will employ more than 1,000 in a 60-story office tower being constructed on the Chicago River near the Merchandise Mart. Chicago also is home to an engineering office of ServiceNow, a Silicon Valley-based company that makes tools for software developers.

..

Software startup Rheaply raises $8 million

https://www.chicagobusiness.com/john-pletz-technology/software-startup-rheaply-raises-8-million

Rheaply, a software startup that helps universities, governments and companies keep track of equipment so they don’t buy things they already have, raised $8 million.

The company, founded by neuroscientist Garry Cooper, has tripled headcount to 24 in the past year. It has signed government customers, including the Defense Department and National Institutes of Health, as well as companies, such as Exelon and AbbVie.

Rheaply will expand its staff and continue to add new capabilities, such as carbon accounting, or the ability to calculate the amount of pollution avoided by not purchasing additional equipment. Rheaply is benefiting from companies' increasing attention to their carbon footprints, as more investors and employees demand accountability under environmental, social and corporate governance criteria.

[marothisu]

Speaking of online furniture retailers

Romeoville snags new distribution center with 250 jobs

https://www.chicagobusiness.com/greg-hin...e-snags-new-distribution-center-250-jobs

Romeoville announced today that Wayfair, an e-commerce firm that specializes in home products, is opening a 1.2 million square foot fulfillment center in the Will County village.

..

In a joint statement from the company and Romeoville, officials said the center should have about 250 full-time jobs when it opens after construction in mid to late 2022, with eventual employment perhaps doubling. The new facility will be located on a 60-acre parcel along Renwick Road.

..

In a follow-up interview, Noak said the village has agreed to what he called a “significant” sales tax break for the new center, promising to rebate 80 percent of its share of sales taxes the facility generates for a decade, and 65 percent for five years after that. Such arrangements are common in the e-commerce industry, he said, and under its deal with Wayfair, the facility's landlord, Duke Realty, will pay the full property tax on the property, something that soon should make it one of the largest payers in the village.

Noak said the sales tax rebate eventually could amount to hundreds of thousands of dollars a year, depending on how fast the facility scales up.

There will be no state incentives, in particular Edge payroll credits, said a spokeswoman for the Illinois Department of Commerce & Economic Opportunity, but the state has funded some road work in the area that will benefit Wayfair and other projects.

Wayfair said it pays all employees a minimum of $15 an hour, plus benefits including 401(k) matching, tuition reimbursement and medical insurance that covers mental health support.

----

Sinch Acquires Chicago-Based Inteliquent in $1.14B Deal

https://www.builtinchicago.org/2021/02/18/sinch-inteliquent-1b-acquisition

Sweden-based Sinch is expanding its efforts in the U.S. with its latest acquisition of Chicago-based voice communications provider Inteliquent. The deal, which was announced Thursday, is valued at $1.14 billion.

[sixo1]

Chicago region ranks number 2 in the world (behind Northern Virginia) for best data center market.

[Source]

[sentinel]

Originally Posted by sixo1

Chicago region ranks number 2 in the world (behind Northern Virginia) for best data center market.

[Source]

I wonder if Northern Virginia being first on the list has more to do with government agencies and the massive amounts of data collected by departments such as the NSA/FBI/CIA/Cyber Command, as well as other federal entities.

[SIGSEGV]

Originally Posted by sentinel

I wonder if Northern Virginia being first on the list has more to do with government agencies and the massive amounts of data collected by departments such as the NSA/FBI/CIA/Cyber Command, as well as other federal entities.

No doubt that's part of it, but see also http://pages.cs.wisc.edu/~pb/tubes_final.pdf

[marothisu]

Originally Posted by sentinel

I wonder if Northern Virginia being first on the list has more to do with government agencies and the massive amounts of data collected by departments such as the NSA/FBI/CIA/Cyber Command, as well as other federal entities.

Most likely, yes. Chicago is up there for other reasons not limited to a centralized geography.

[marothisu]

This happened a few weeks ago but didn't see it posted:

Zillow is buying a Chicago software company for $500M

https://www.bizjournals.com/chicago/inno...s-chicago-software-company-for-500m.html

Zillow is acquiring ShowingTime, a Chicago tech company that pioneered online scheduling for the residential real estate industry, for half a billion dollars.

Zillow said Wednesday that it is buying Chicago's ShowingTime for $500 million. Founded in 1999, ShowingTime has developed an online scheduling platform for home showings, helping agents coordinate schedules and seamlessly book a confirmed home showing online.

ShowingTime said it has a network of nearly one million agents across North America, and last year it facilitated more than 50 million home showings.

Zillow said ShowingTime will continue to operate as a standalone platform and that it will continue to invest in the Chicago tech company.

[UPChicago]

Originally Posted by marothisu

This happened a few weeks ago but didn't see it posted:

Zillow is buying a Chicago software company for $500M

https://www.bizjournals.com/chicago/inno...s-chicago-software-company-for-500m.html

Their website already has scheduling functionality embedded wondering why they would acquire ShowingTime

[marothisu]

Originally Posted by UPChicago

Their website already has scheduling functionality embedded wondering why they would acquire ShowingTime

There are many reasons why companies do this, for example:
1) They could have superior tech to them
2) Their product could simply be better and they see a way to grow their revenue thru acquisition
3) They have something that makes Zillow's future plans for something easier/cheaper in the long run (and maybe in line with #2)

etc

There's many reasons. Just because someone has something implemented already doesn't mean they don't have a competitor who just simply did it better.

[SIGSEGV]

Originally Posted by marothisu

There are many reasons why companies do this, for example:
1) They could have superior tech to them
2) Their product could simply be better and they see a way to grow their revenue thru acquisition
3) They have something that makes Zillow's future plans for something easier/cheaper in the long run (and maybe in line with #2)

etc

There's many reasons. Just because someone has something implemented already doesn't mean they don't have a competitor who just simply did it better.

4) acquihire.