Chicago Board Options Exchange

Chicago Board Options Exchange (CBOE)

A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place for the trading of stock options, foreign currency options, and index options (S&P 100, 500, and OTC 250 index)

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Chicago Board Options Exchange (CBOE)

A securities exchange established in 1973 as the nation's first organized floor for trading standardized options. Although its success spawned option trading on a number of other exchanges, the CBOE remains the most active options exchange in the country. Unlike most exchanges that use a specialist system of trading, the CBOE uses market makers who compete among themselves for trades. See also board broker.

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Chicago Board Options Exchange (CBOE). The CBOE, often pronounced "see-bo," is the largest options market in the world. Founded in 1973, the market specializes in trading options contracts on individual equities, indexes, and interest rates.

Over the years, the CBOE has been instrumental in developing a variety of new options-related financial products. One example is the FLEX option, which the CBOE introduced in 1993 to allow investors to add specific provisions to options contracts.

The market is also known for being on the cutting edge of advanced trading technologies, including electronic trading.