17 October 2017

CME wins IRS approval and sets date for demutualisation

09 November 2000  |  2115 views  |  0 CME wins IRS approval and sets date for demutualisation

The Chicago Mercantile Exchange has won IRS Internal Revenue Service approval for its proposals to become a for-profit corporation. As a result, the Chicago futures exchange has set Monday, 13 November as the effective date for demutualisation.

The IRS ruling confirmed that conversion of CME memberships into shares of a for-profit corporation qualifies for tax-free treatment. The ruling satisfies the final condition for the "demutualisation" of the not-for-profit, membership-owned organisation.

The CME is expected to be the first major US exchange to convert its membership interests into equity interests that can be traded separately from exchange trading privileges. Like Liffe, its counterpart in the UK, the exchange is planning to develop its technology platform to deliver exchange-based infrastructures and services to a new generation of B2B marketplaces.

Exchange members voted to transform the 102-year-old institution into a shareholder-owned corporation in early June. The CME says the 98.3 percent favourable vote was the highest margin of approval in its history.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cap Gemini offered equity stake in Liffe IT

Cap Gemini offered equity stake in Liffe IT

27 October 2000  |  2294 views  |  0 comments
CME develops B2B futures trading link

CME develops B2B futures trading link

18 September 2000  |  2736 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.temenos.com Register now

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14430 views comments | 11 tweets | 3 linkedin
Taiwan's Far Eastern International Bank suffers malware attackTaiwan's Far Eastern International Bank su...
13061 views comments | 16 tweets | 22 linkedin
Monzo fends off suitors as current account upgrade beginsMonzo fends off suitors as current account...
8956 views comments | 17 tweets | 14 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
7899 views comments | 15 tweets | 20 linkedin
Ripple blockchain network hits 100-member markRipple blockchain network hits 100-member...
7599 views comments | 13 tweets | 13 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job