Chicago Board Options Exchange
 | |
| Company type | Public |
|---|---|
| Nasdaq: CBOE S&P MidCap 400 Component | |
| Industry | Security & commodity exchanges |
| Founded | 1973 |
| Headquarters | , US |
Key people | Edward T. Tilly (CEO) Edward L. Provost (President, &COO) Alan J. Dean (CFO) |
| Revenue |  US$634.54 million (2015) [1] |
| US$205.02 million (2015)[1] | |
| Total assets | US$384.79 million (2015)[1] |
| Total equity | US$259.65 million (2015)[1] |
Number of employees | 650 [2] |
| Website | cboe |
The Chicago Board Options Exchange (Nasdaq: CBOE), 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.[3] 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.[4][5] The CBOE is regulated by the Securities and Exchange Commission.
Operations
CBOE's options contracts are cleared by the Options Clearing Corporation (OCC). As of approximately April 11, 2007, the Wall Street Journal estimates that globally the market capitalization of the derivatives markets (futures, options, swaps, etc.) exceeds 450 trillion dollars (while US stock exchanges have approximately 30 trillion and the rest of the worlds stock exchanges total to about another 20 trillion, to a total of about 50 trillion—while the global fixed income markets total to roughly 65 trillion).
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.;[6] the CBOE Stock Exchange ceased its trading operations on April 30, 2014.[7][8]
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.
On March 11, 2010 CBOE filed paperwork to launch an initial public offering[9] and began trading on the NASDAQ stock exchange on June 15, 2010.[10]
On June 2, 2015 CBOE announced its acquisition of the LiveVol platform, a market data services provider.[11]
On January 25, 2016 CBOE announced it had purchased a majority stake in Vest Financial, an investment adviser specializing in "options-centric products".[12]
In September 2016, it was announced that CBOE was purchasing BATS Global Markets, effective in early 2017, for approximately US$3.2 billion.[13]
Contracts offered
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 (QQQQ)
- 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)
The CBOE calculates and disseminates the CBOE Volatility Index (VIX), the CBOE S&P 500 BuyWrite Index (BXM), and other indexes.
See also
- List of companies in the United States
- List of S&P 400 companies
- Chicago Board of Trade Building
- Commodity Futures Trading Commission
- Derivatives market
- List of futures exchanges
- National Stock Exchange (Jersey City, New Jersey)
- OneChicago
- Options Clearing Corporation
- Volatility Index
References
- ^ a b c d "CBOE HOLDINGS, INC. 10-K For the fiscal year ended December 31, 2015". www.sec.gov.
- ^ "Yahoo! Finance: CBOE Profile". Retrieved October 21, 2014.
- ^ "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.
- ^ http://www.cbsx.com/publish/RegCir/RG14-069.pdf
- ^ http://www.chicagobusiness.com/article/20140221/NEWS01/140229959/cboe-to-exit-stock-exchange-business
- ^ "CBOE files paperwork for IPO". Chicago Breaking Business.
- ^ Oneal, Michael (June 15, 2010). "CBOE garners $339 million in IPO". Chicago Tribune. Retrieved October 17, 2013.
- ^ "Chicago Board Options Exchange - The World's Largest Options Exchange". CBOE.com. Retrieved May 12, 2016.
- ^ "Chicago Board Options Exchange - The World's Largest Options Exchange". CBOE.com. Retrieved May 12, 2016.
- ^ "CBOE Will Acquire BATS Global Markets for $3.2 Billion". fortune.com. September 26, 2016. Retrieved September 27, 2016.