CME's Duffy: Proposed Illinois Trading Tax 'Ridiculous'

The video discusses a proposed tax on CME trades, highlighting its potential negative impact on liquidity providers and the irrationality of taxing based on notional value. The speaker argues that such a tax would make trading unprofitable, potentially forcing CME to relocate. The urgency of legislative action is emphasized, with a deadline for approval by May 31st. The proposal is criticized as being short-sighted and detrimental to business efficiency.

What is the proposed tax amount per trade that the CME is facing?

• $12 billion total

• $1.60 to $0.80

• $0.40 to $1.15

• $2.00 per trade

Why does the speaker believe the tax proposal is irrational?

• It will benefit only large traders.

• It will decrease the state's revenue.

• It is based on notional value rather than actual profits.

• It will increase the number of trades.

What analogy does the speaker use to explain the issue with notional value taxation?

• A real estate agent selling a house

• A stockbroker trading shares

• A farmer selling crops

• A car dealer selling vehicles

What is the potential consequence if the tax proposal is implemented?

• CME will lower its fees.

• CME will increase its trade volume.

• CME will move out of Illinois.

• CME will reduce its workforce.

What is the deadline for lawmakers to approve the legislation?

• July 1st

• May 31st

• June 30th

• April 15th