The U.S. Securities and Exchange Commission on Thursday rejected the sale of the Chicago Stock Exchange (CHX) to a group led by China-based investors, saying there were unresolved questions about the ownership structure under such a deal and whether the SEC would have sufficient oversight of the exchange if it was sold.
“Because of these concerns, whether viewed independently or in combination, we are unable to find that CHX has met its burden of demonstrating that the proposed rule change is consistent with the Exchange Act and the applicable rules and regulations thereunder. We therefore disapprove the proposed rule change,” the SEC said in a statement.
SEC staff had initially approved the sale of privately owned CHX for an undisclosed amount to a consortium led by Chongqing Casin Enterprise Group but the regulator put that decision on hold in August of last year for further review.
The deal had drawn criticism from U.S. lawmakers who questioned the SEC’s ability to regulate and monitor the foreign buyers if the deal was approved.
