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My Friends,

This Idea, The Time Has Come to Move Forward.


Transaction Revenue fees brought in by all Chicago !"changes CM! #rou$,
Chicago %toc& !"change and the Chicago 'oard of ($tions I would li&e to $ro$ose a
new Idea and a new way to generate revenues by enacting a fee of .)* Cents $er
transaction on all trades e"ecuted on the Chicagos ma+or Commodity, %toc& and
($tion e"changes as well as their com$uteri,ed trading $latform systems.
This fee would only be $er-transaction, not $er 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 ban&ing and or trading firms.
I would also li&e $oint out since ./)) that our e"changes here are constantly being
loo&ed at as a target for terrorism and this has added high cost to our city and state
budgets for security monitoring to hel$ ward off such attac&s with no source to hel$
offset and $ay for these ongoing additional cost. These !"changes were originally
set u$ as non-$rofit entities but over the $ast few years have now become for $rofit
enter$rises and the +obs that once where there offered $eo$le are not available.
The e"change floors have im$lemented com$uteri,ed systems for e"ecuting trades
and as a result, these firms no longer em$loy a large staff need the large staff which
in return has decreased $ayroll ta"es to the state.
0evertheless, using the com$uteri,ed systems has hel$ed these firms to &ee$ their
$rofits margins high and their C!( and other to$ e"ecutive ban& accounts fat with
bonus and $rofits. These four e"changes combined conduct over ) billion transaction
a month thus giving our state an o$$ortunity to sei,e around )** million dollars $er-
month giving us anywhere from 1** million to over ) billion dollars of new revenue to
our states coffers which could go to schools, $ensions funding, health care and
infrastructure $ro+ects which will hel$ bring +obs to the $eo$le of Illinois.
Illinois would be the first %tate to enact this ty$e of revenue stream but once it is
done, other states such as 02 or California that have e"changes could $otentially
co$y and follow our 3Illinois4 lead.
The transaction fee has no mention of the e"em$tions along with the CM!
management fee. %o +ust a reminder Floor members, Illinois residents, and
5griculture would be e"em$ted. The CM! would collect between a 1 to )*6 fee from
the fee7s they collect via the e"changes. The ten cent transaction fee over ten years
would increase to 8).** $er transaction not $er share
This will allow the %tate to discontinue the )9: million a year it gives the CM!,
because they would have a revenue stream of )1* to 1** million dollars a year.