WASHINGTON (dpa-AFX) - The U.S. Securities and Exchange Commission on Thursday blocked the proposed acquisition of the Chicago Stock Exchange by a Chinese-led group of investors.
The SEC said the proposed acquisition deal does not comply with U.S. rules governing stock exchanges. The regulator said the deal lacks transparency in the details, including an inability to identify who exactly would control the exchange.
A subsidiary of the Chongqing Casin Enterprise Group was to buy the Chicago Stock Exchange for $20 million.
'The inability of the Exchange to obtain documents and information necessary for it and the Commission to resolve key questions regarding the funding of, and relationships between, upstream investors-notwithstanding its strong incentive to do so in light of the pending Commission review of the proposed rule change- arises significant doubts about the Exchange's ability to engage in this extensive monitoring following approval of the Proposed Transaction,' SEC said in a statement.
'We therefore find that the Exchange has not provided a sufficient basis for us to conclude that it would be able to ensure compliance with the ownership and voting limitations following consummation of the Proposed Transaction'
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