What is the Chicago Board Options Exchange?

The Chicago Board Options Exchange (CBOE) is the largest options exchange in the US. Over one million options are bought and sold in the CBOE marketplace every day.

The CBOE is regulated by the US Securities and Exchange Commission.

Where have you heard about the Chicago Board Options Exchange?

If you trade in American options, there’s a high probability that you buy or sell through CBOE.

You may also have heard about CBOE in the news:

• In 2010 CBOE filed an IPO on the NASDAQ stock exchange
• In 2015 it acquired a market data services provider, LiveVol platform
• In 2016 it bought BATS Global Markets for approximately US$3.2 billion

What you need to know about the Chicago Board Options Exchange.

Founded in 1973 to celebrate 125 years of the Chicago Board of Trade, the CBOE was the first exchange to trade in standardised options.

The CBOE offers options on some of the biggest companies and indexes in the US, and has an exclusive licensing deal on the S&P 500 index – a popular equity index, commonly considered one of the best representations of the US stock market.

Additionally, the CBOE generates the CBOE Volatility Index (VIX) – a measure of the S&P 500 market instability.

Find out more about an options broker.

Further understand the role of an options broker by reading our definition of options trading.