The Chicago Board Options Exchange's Past and Present

It opened cautiously in 1973 with trading in calls on sixteen different common stocks. Soon after, it listed puts; substantially expanded it’s listing of underlying stocks, and began trading index options.

The CBOE revolutionized options trading by creating standardized and listed stock options but before that options were traded on an unregulated basis. It was originally formed by the Chicago Board of Trade (CBOT). Today it is managed and regulated as an independent body. CBOE became the second largest securities exchange in the US and the world's largest options exchange after the acceptance of listed options. Today, CBOE accounts for more than 51% of all U.S. options trading and 91% of all index options trading.

In 1980 in a historical move the Chicago Board Options Exchange and the Midwest Stock Exchange consolidated their options business. Today CBOE lists options on approximately 1,500 widely traded stocks. CBOE is also known for its introduction of Options on Interest Rates.

This development and the introduction of LEAPS by CBOE in 1990 which are long-term options in equity, index and interest rate classes that allows investors to establish positions that can be maintained for a period of up to three years. CBOE continued its innovation and its commitment to the investing community.

In short, the CBOE family of options products includes a variety of individual equity options, domestic broad-based, domestic sector and international indices that help meet the needs of the global investing community.