Chicago Board Options Exchange

Corporate brand

The Chicago-founded exchange that pioneered standardized listed stock options and became the flagship derivatives marketplace of Cboe Global Markets.

Last updated October 14, 2026

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Overview

The Chicago Board Options Exchange, commonly known as CBOE, is a major United States derivatives exchange headquartered in Chicago, Illinois. It was established by the Chicago Board of Trade and began trading on April 26, 1973, becoming the first exchange to list standardized, exchange-traded options on individual stocks. Its creation transformed an over-the-counter market, in which buyers and sellers had to negotiate contracts directly, into a centralized marketplace supported by standardized contracts, transparent quotations, and clearing arrangements designed to reduce counterparty risk. The exchange originated from an idea developed in 1969 by Edmund O'Connor, then vice chairman of the Chicago Board of Trade. The proposal encountered regulatory and industry resistance, particularly from the U.S. Securities and Exchange Commission, but the CBOT hired Joseph Sullivan to develop the concept and address concerns from regulators and brokerage firms. The SEC approved the project in October 1971, and the exchange was incorporated as an independent organization in February 1972, with Sullivan becoming its first president. CBOE initially operated from a former smoking lounge in the CBOT building. Its first month produced 34,599 contracts, but activity expanded rapidly as standardized options became more widely used for hedging, income generation, speculation, and portfolio management. By 1976, monthly trading volume had reached approximately 1.5 million contracts. The exchange moved to 400 South LaSalle Street in 1984 and later maintained a distinctive combination of electronic trading and open-outcry activity. One of CBOE's most influential innovations was the CBOE Volatility Index, or VIX, introduced in 1993. Initially based on options on the S&P 100, the index was revised in 2003 to measure expected 30-day volatility implied by S&P 500 options. VIX became a widely followed market barometer often described as a measure of expected equity-market volatility. CBOE subsequently developed tradable products linked to volatility, including VIX futures, which launched in 2004. The exchange became part of a broader corporate group as CBOE Holdings pursued public ownership and acquisitions. CBOE Holdings completed an initial public offering in 2010. It acquired the National Stock Exchange in 2011, LiveVol in 2015, and a majority interest in Vest Financial in 2016. Its most consequential expansion came in 2017, when it acquired BATS Global Markets for approximately $3.2 billion. The transaction added major U.S. equities venues and international trading capabilities, helping turn the organization from a primarily options-focused exchange into a diversified global market-infrastructure company. CBOE Holdings adopted the name Cboe Global Markets in 2017. The group later expanded into market data, trade analytics, clearing, alternative trading systems, Canadian and Asia-Pacific equities, and digital assets. Related acquisitions included Hanweck, FT Options, MATCHNow, Trade Alert, EuroCCP, BIDS Trading, Chi-X Asia Pacific, NEO, and ErisX. Some businesses were subsequently sold, closed, rebranded, or reduced in scope. Cboe also returned its U.S. parent-company listing to its own exchange in 2018 and opened a new trading floor in the historic Chicago Board of Trade building in 2022. Although the original exchange is now embedded in Cboe Global Markets, the CBOE brand remains closely associated with listed options, volatility products, index derivatives, and the Chicago derivatives community. The broader group operates options, equities, futures, foreign-exchange, clearing, and data businesses across several regions. Its U.S. business includes options on indexes and individual securities, North American equities venues, and VIX futures. The CBOE identity therefore represents both a historic Chicago exchange and the flagship derivatives franchise of a larger global exchange operator.

History

The Chicago Board Options Exchange emerged from a late-1960s effort to create a centralized and standardized marketplace for stock options. In 1969, Chicago Board of Trade vice chairman Edmund O'Connor proposed an exchange that would replace the fragmented over-the-counter model with standardized contracts and centralized clearing. The CBOT formed a committee to study the idea. Because the project raised significant regulatory and market-structure questions, the CBOT engaged Joseph Sullivan to work with the SEC and the brokerage community. Regulatory approval was obtained in October 1971, and the Chicago Board Options Exchange was incorporated as an independent organization in February 1972. Sullivan became its president. CBOE opened for business on April 26, 1973, using space in the CBOT building. It was the first exchange to list standardized, exchange-traded options on individual stocks. The exchange's first full month produced 34,599 contracts, and monthly volume had grown to 1.5 million contracts by 1976. During its early decades, CBOE helped establish listed options as a mainstream tool for hedging and investment. It operated from the CBOT complex before moving to 400 South LaSalle Street in 1984. The exchange developed a strong innovation profile. It introduced the CBOE Volatility Index in 1993, initially using S&P 100 options to estimate expected 30-day volatility. In 2003, the benchmark was redesigned around S&P 500 options. The VIX became one of the most recognizable indicators of market uncertainty and supported a family of futures and other tradable products. VIX futures were introduced in 2004 after market research indicated demand for instruments based on implied volatility. CBOE's ownership and business model changed substantially in the 2010s. The organization became publicly listed through the 2010 initial public offering of CBOE Holdings. It acquired the National Stock Exchange in 2011, though that exchange later stopped trading. In 2015, it purchased LiveVol, adding options analytics and visualization capabilities, and in 2016 it acquired a majority stake in Vest Financial. The 2017 acquisition of BATS Global Markets was the pivotal expansion. BATS added U.S. equities exchanges, trading technology, and international reach, while also accelerating the group's transition from a single-product options venue to a diversified exchange operator. CBOE Holdings changed its name to Cboe Global Markets in October 2017. The group continued building a global market-infrastructure platform. It acquired or invested in analytics companies including Hanweck and FT Options, Canadian alternative trading system MATCHNow, order-flow analytics provider Trade Alert, clearing house EuroCCP, and alternative trading venue BIDS Trading. Chi-X Asia Pacific expanded its presence in Japan and Australia, while the acquisition of NEO created a larger Canadian equities franchise later branded Cboe Canada. In 2022, the group acquired ErisX, a digital-asset spot market, futures exchange, and clearing house, and renamed the business Cboe Digital. Cboe maintained visible links with Chicago's trading heritage while broadening its technology base. The company moved its headquarters to the Old Chicago Main Post Office in 2019 and constructed a new trading floor in the CBOT building. That floor opened in June 2022. The organization also faced regulatory and governance challenges, including a 2013 penalty related to abusive short-selling controls, patent litigation brought by the International Securities Exchange, and the 2023 resignation of CEO Edward Tilly over undisclosed personal relationships with colleagues. The CBOE brand remains the group's historic and best-known derivatives franchise, while Cboe Global Markets provides the corporate structure for its wider options, equities, futures, foreign-exchange, clearing, and data businesses.

2023
Cboe marks 50 years of listed-options innovation
[1]Cboe 50th Anniversary: 1973–2023 history and milestonescboe.com
The company commemorated five decades since the first listed stock-options trade and highlighted the development of index, volatility, weekly and daily-expiration products.
2022
New trading floor opens in the exchange’s historic Chicago location
[9]Cboe opens new trading floorir.cboe.com
Cboe reopened a trading floor in the Chicago Board of Trade building, returning open-outcry operations to its founding location.
2020
Trade Alert acquisition expands real-time analytics
[21]Trade Alert acquisition expands real-time analyticsir.cboe.com
Cboe acquired Trade Alert to strengthen real-time trade alerts, order-flow analysis and information services.
2018
Cboe Futures Exchange migrates to proprietary technology
[20]Cboe Futures Exchange migrates to proprietary technologyir.cboe.com
Cboe completed the migration of CFE to the proprietary trading technology associated with the Bats integration.
2017
Bats Global Markets acquisition closes
[8]Cboe completes Bats Global Markets acquisitionir.cboe.com
CBOE Holdings completed the acquisition of Bats, significantly expanding the group’s geographic coverage, technology and cash-equity businesses.
2010
Demutualization and public listing
[19]Demutualization and public listingcdn.cboe.com
Cboe converted from a member-owned non-stock organization into a subsidiary of CBOE Holdings, which completed its initial public offering.
2006
VIX options begin trading
[11]VIX Index methodologycdn.cboe.com
Cboe launched options on the VIX Index, extending tradable volatility products beyond futures.
2005
Weeklys options are introduced
[17]Index-options development expands the exchange’s product rangecboe.com
Cboe pioneered weekly expirations, allowing more frequent and shorter-duration options exposure.
2004
Cboe Futures Exchange and VIX futures begin
[11]VIX Index methodologycdn.cboe.com
Cboe began operating a futures exchange and launched the first exchange-traded VIX futures contract.
2003
VIX methodology is redesigned around S&P 500 options
[10]VIX Index historical informationcboe.com
The VIX methodology was revised to measure expected volatility from a wider range of S&P 500 options.
1993
The original VIX Index is launched
[10]VIX Index historical informationcboe.com
Cboe introduced the original volatility index, initially based on implied volatility from S&P 100 options.
1990
LEAPS are introduced
[17]Index-options development expands the exchange’s product rangecboe.com
Cboe introduced long-term equity anticipation securities, giving investors access to longer-dated listed equity options.
1985
The Options Institute is established
[18]The Options Institute is establishedcboe.com
Cboe created The Options Institute as a dedicated education and market-literacy organization focused on options.
1980
Index-options development expands the exchange’s product range
[17]Index-options development expands the exchange’s product rangecboe.com
Cboe pioneered listed options on equity indexes during the early 1980s, extending options beyond individual shares.
1973
First standardized listed stock options trade
[1]Cboe 50th Anniversary: 1973–2023 history and milestonescboe.com
Cboe opened on April 26, 1973, listing calls on 16 stocks and trading 911 contracts on its first day.
1972
Chicago Board Options Exchange is incorporated
[16]Chicago Board of Trade develops the concept of an organized stock-options exchangeen.wikipedia.org
The proposed options marketplace was incorporated as an independent organization with its own governing structure.
1969
Chicago Board of Trade develops the concept of an organized stock-options exchange
[16]Chicago Board of Trade develops the concept of an organized stock-options exchangeen.wikipedia.org
Chicago trading leaders began developing a proposal for standardized, centrally cleared stock options to replace fragmented over-the-counter practices.

Products and positioning

An innovation-led derivatives marketplace combining standardized listed options, index and volatility products, electronic trading, open-outcry expertise, market data and the infrastructure of the wider Cboe Global Markets group.

U.S. listed options exchange · 1973
Cboe Options Exchange
The flagship Cboe U.S. options marketplace and the direct successor to the original Chicago Board Options Exchange. It uses a hybrid market structure combining electronic execution with open outcry. The venue lists options on individual equities, exchange-traded funds, indexes and volatility benchmarks, with particular importance attached to SPX, VIX, RUT and SPY products. Its floor-based model remains designed for complex orders, institutional flow and transactions where broker interaction and price discovery are valuable, while electronic systems support broad access and high-volume trading.
S&P 500 index options · 1983
SPX and SPXW options
Cboe’s S&P 500 options franchise includes standard SPX contracts and shorter-dated SPXW contracts. These cash-settled, European-style index options are widely used for portfolio hedging, volatility trading, income strategies and tactical exposure to the U.S. large-cap market. The expansion of weekly and daily expirations has enabled traders to target specific economic events and manage exposure over increasingly short horizons. SPX products are among the most recognizable instruments associated with the Cboe brand.
Volatility index · 1993
Cboe Volatility Index
The Cboe Volatility Index, known as VIX, is designed to represent the market’s expectation of 30-day forward-looking volatility in the U.S. equity market as inferred from S&P 500 index-option prices. Introduced in its original form in 1993 and redesigned in 2003, VIX became a widely followed benchmark for expected equity volatility. It is used as a market indicator, a reference for derivatives and a foundation for tradable futures, options and exchange-traded products.
Volatility futures · 2004
VIX futures
VIX futures provide exchange-traded exposure to the expected future level of the VIX Index rather than directly to the spot level of equity volatility. Introduced in 2004 through the Cboe Futures Exchange, they are used by institutions, volatility specialists and other market participants for hedging, directional positioning, relative-value trading and portfolio construction. Their launch helped convert the VIX from an informational benchmark into a tradable volatility asset class.
Volatility options · 2006
VIX options
VIX options give market participants options-based exposure to the level and distribution of expected U.S. equity volatility. Launched in 2006, they complement VIX futures and can be used for hedging, volatility spreads, tail-risk management and structured strategies. Because their underlying reference is the VIX Index rather than a conventional security, they are a distinctive part of Cboe’s volatility product ecosystem.
Listed equity derivatives · 1973
Equity and ETF options
Cboe’s equity and ETF options cover individual U.S. shares and exchange-traded funds. These contracts support hedging, leverage, income generation, directional speculation and risk-defined strategies. The category includes options traded across Cboe’s U.S. options exchanges, with execution models that vary by venue. ETF options are particularly important for users seeking to express views on broad indexes, sectors, factors and specific investment themes without trading the underlying fund directly.
Customizable listed options · 1993
FLEX options
FLEX options allow participants to customize selected contract terms, including strike price, expiration date, exercise style and settlement features, while retaining exchange-traded and centrally cleared characteristics. They are designed for institutions and sophisticated investors whose hedging or investment objectives do not fit standard listed contracts. FLEX products extend Cboe’s role from standardized options trading into more tailored risk-transfer solutions.
Short-dated listed options · 2005
Weeklys and same-day-expiration options
Cboe’s Weeklys and daily-expiration products provide more frequent opportunities to establish and close options positions. Short-dated contracts can offer lower premiums and more precise exposure around scheduled events, but they also carry rapid time decay and heightened sensitivity to price movements. Cboe’s development of SPX Weeklys and expirations across multiple weekdays helped support the growth of the modern short-duration index-options market.
Financial market data and analytics · 2015
Cboe market data and analytics
The wider Cboe organization distributes options, volatility, equity, FX and index data, together with analytics and execution tools. These offerings include proprietary indexes, historical and real-time market data, volatility and options analytics, and technology for trading workflows. The data business has been expanded through acquisitions and integrations involving businesses such as LiveVol, Hanweck, FT Options and Trade Alert.
Financial education · 1985
The Options Institute
The Options Institute is Cboe’s educational arm. Established in 1985, it provides educational materials, courses, market commentary and practical explanations of options concepts, strategies, products and risks. It supports the exchange’s broader market-development role by helping professionals, intermediaries and other participants understand listed options and volatility products.

Controversies

2000
SEC censure over options-listing and rule-enforcement practices
The SEC found that CBOE and several other options exchanges had failed to comply with certain exchange rules and had not adequately enforced parts of their own rules. The order censured the exchanges and required changes to the joint options-listing plan, including removal of provisions that could delay or restrict competing listings.
Source

2024The Creation of Listed Options at Cboe
United States · Global
Cboe published historical and educational material describing the creation of the listed-options market, the role of Joseph Sullivan, the early trading floor and the relationship between financial theory, standardization and exchange liquidity.
Outcome. The campaign supported corporate-history education and connected Cboe’s founding story with the development of modern options pricing and trading.
Source
2023Cboe 50th Anniversary
United States · Global
Cboe marked the fiftieth anniversary of its founding and the first U.S. listed-options trading day through historical storytelling, educational content and a review of major product innovations including index options, VIX products, Weeklys and daily expirations.
Outcome. The anniversary campaign reinforced Cboe’s positioning as the pioneer of standardized listed options and an innovation-focused global exchange network.
Source
1985The Options Institute
United States · Global
Cboe established a dedicated educational organization to explain options markets and support informed participation. The initiative addressed the complexity of a relatively new financial product and became a long-running part of the brand’s market-development strategy.
Outcome. The Options Institute became a continuing education platform associated with Cboe and the wider listed-options industry.
Source

Brand decisions

2025
Realign global business leadership around derivatives, data, equities and operationsStrategy
Background
Cboe’s expansion across asset classes and regions created a need to align senior accountability for derivatives, data, equities, foreign exchange, clearing and technology.
Action taken
Following the appointment of Craig Donohue as CEO, Cboe expanded the responsibilities of senior leaders and later announced Scott Johnston as COO and Heidi Fischer as global head of equities and spot markets.
Aftermath
The changes emphasized core derivatives leadership while integrating data, technology, equities and international market operations into the group’s growth strategy.
Source
2022
Reopen a modern open-outcry trading floorStrategy
Background
Electronic trading had become dominant, but Cboe continued to view floor-based interaction as useful for complex options orders and as an important part of its institutional identity.
Action taken
Cboe opened a new trading floor in the Chicago Board of Trade building, the original home of the exchange, with dedicated pits for major index and volatility products.
Aftermath
The decision preserved a hybrid execution model and visibly connected the contemporary Cboe brand with its 1973 origins.
Source
2017
Acquire Bats Global MarketsM&A
Background
Cboe sought greater geographic reach, stronger technology, broader asset-class coverage and more recurring data and market-infrastructure revenues.
Action taken
CBOE Holdings completed the acquisition of Bats Global Markets in a cash-and-stock transaction valued at approximately $3.4 billion.
Aftermath
The combined company expanded into U.S. and European equities, exchange-traded products, FX, market data and proprietary exchange technology. The parent later adopted the Cboe Global Markets name.
Transaction value. Approximately $3.4 billion (At closing on February 28, 2017)
Source
2010
Demutualize and become a publicly listed exchange groupStrategy
Background
Cboe had operated for decades as a member-owned exchange and needed a corporate structure suited to investment, technology development and acquisitions.
Action taken
The exchange converted into a stock corporation owned by CBOE Holdings, and CBOE Holdings completed an initial public offering.
Aftermath
The change gave Cboe access to public capital and created the corporate platform that later became Cboe Global Markets.
Source
2005
Introduce Weeklys optionsGeneration change
Background
Traditional monthly and quarterly expirations did not always provide sufficiently precise timing for event-driven hedging or short-duration strategies.
Action taken
Cboe introduced options with weekly expirations and later expanded the frequency of SPX expirations to additional weekdays and daily cycles.
Aftermath
Short-dated options became a major growth area and helped create the modern market for weekly and same-day-expiration contracts.
Source
2004
Launch VIX futures through Cboe Futures ExchangeProduct launch
Background
The growing importance of volatility as an investable and hedgeable risk factor created demand for a listed instrument linked to expected volatility.
Action taken
Cboe introduced the first exchange-traded VIX futures contract through its all-electronic futures exchange.
Aftermath
The decision established volatility futures as a distinct derivatives category and expanded Cboe’s product scope beyond equity and index options.
Source
1993
Introduce the Cboe Volatility IndexProduct launch
Background
Market participants lacked a widely recognized benchmark for measuring expected near-term equity-market volatility.
Action taken
Cboe launched the original VIX based on implied volatility from S&P 100 options and later redesigned the index around S&P 500 options.
Aftermath
VIX became a globally recognized volatility benchmark and the basis for futures, options, exchange-traded products and analytics.
Source
1973
Launch the first standardized listed stock-options marketplaceProduct launch
Background
Equity options were primarily traded over the counter with individually negotiated terms, limited transparency and fragmented liquidity.
Action taken
Cboe opened a centralized exchange offering standardized option contracts, displayed quotations, market makers, exchange rules and clearing arrangements.
Aftermath
The launch created the modern U.S. listed-equity-options industry and established Cboe as its pioneering exchange.
Source

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