Chicago Board Options Exchange
|Location||Chicago, IL, United States|
|Currency||United States dollar|
The Chicago Board Options Exchange, located at 400 South LaSalle Street in Chicago, is the largest U.S. options exchange with annual trading volume that hovered around 1.27 billion contracts at the end of 2014. CBOE offers options on over 2,200 companies, 22 stock indices, and 140 exchange-traded funds (ETFs).
The Chicago Board of Trade established the Chicago Board Options Exchange in 1973. The first exchange to list standardized, exchange-traded stock options began its first day of trading on April 26, 1973, in a celebration of the 125th birthday of the Chicago Board of Trade. The CBOE is regulated by the Securities and Exchange Commission and owned by CBOE Holdings.
In 2004, CBOE opened trading on the CBOE Futures Exchange (CFE) for volatility and variance contracts. In 2007, CBOE launched a Reg NMS-compliant stock exchange called the CBOE Stock Exchange (CBSX) to compete with the NYSE, Nasdaq, and other regional exchanges.; the CBOE Stock Exchange ceased its trading operations on April 30, 2014.
Trading at CBOE is carried out by way of the exchange's Hybrid system, which enables customers to trade – either electronically or through open outcry. About 95 percent of CBOE orders are traded electronically, which equates to between 50 and 60 percent of the exchange's total business. The remaining transactions, traded via open outcry, typically are large or complex institutional orders that use the skills of floor brokers to "work the order" to gain potential price improvement.
The CBOE (and other national options exchanges) offers options on the following, and others:
- S&P 500 Index (ticker SPX)
- S&P 100 Index (OEX)
- Dow Jones Industrial Average (DJX)
- NASDAQ-100 Index (NDX)
- Russell 2000 Index (RUT)
- SPDR S&P 500 (SPY)
- NASDAQ-100 Trust (QQQ)
- Nasdaq Composite (ONEQ)
- S&P Latin American 40 (ILF)
- S&P MidCap 400 (MDY, IJH, and CBOE root symbol MID)
- Cohen & Steers Realty Majors Index (ICF)
- Wilshire 5000 (VTI)
- MSCI EMIF (EEM)
- MSCI EAFE (Europe-Asia-Australia-far-east) (EFA)
- Dow Diamonds Trust (DIA)
- China 25 Xinhua/FTSE Index (FXI)
- Brazil São Paulo Stock Exchange (EWZ)
- Microsoft (MSFT)
- General Electric (GE)
- Altria (MO)
- Chicago Board of Trade Building
- Commodity Futures Trading Commission
- Derivatives market
- List of futures exchanges
- National Stock Exchange (Jersey City, New Jersey)
- Options Clearing Corporation
- Volatility Index
- "CBOE Market Stats" (PDF). Chicago Board Options Exchange. Retrieved May 12, 2016.
- "Options Exchange Opens On Parent's Anniversary". A Financial History of the United States by Jerry W. Markham. M.E. Sharpe. 2002. p. 52. Retrieved November 26, 2014.
- "History". Chicago Board Options Exchange. Retrieved October 14, 2008.
- "CBOE Stock Exchange (CBSX) To Postpone Launch Date In Conjunction With Delay Of Reg NMS Effective Date". Chicago Board Options Exchange. January 24, 2007. Retrieved October 14, 2008.