CBOE

What Is the CBOE?

The CBOE (Chicago Board Options Exchange), formally CBOE Global Markets, is the largest options exchange in the United States by volume. Founded in 1973, it created the first organized market for standardized equity options contracts. Before the CBOE, options were traded over-the-counter with no standardization, no central clearinghouse, and no price transparency.

The CBOE’s most significant product innovations include the creation of SPX options — options written directly on the S&P 500 Index — and the launch of the VIX (Volatility Index) in 1993, which has become the global benchmark for market-implied volatility. These two products alone generate a substantial portion of daily U.S. options volume and form the backbone of institutional volatility trading.

CBOE operates multiple trading venues. The flagship CBOE exchange handles a large share of SPX and VIX options flow. Through acquisition, CBOE Global Markets also owns CBOE BZX, CBOE C2, and other venues, making it a multi-exchange operator rather than a single trading floor.

Why It Matters for Options Traders

Every standardized U.S. options contract traded today traces its lineage back to the regulatory and structural frameworks the CBOE helped establish. The concept of a standardized contract with defined strike prices, expiration dates, and exercise mechanics — all guaranteed by a central clearinghouse — was the CBOE’s contribution to financial markets.

For active traders, the CBOE is the primary venue for SPX and VIX options, which are among the most actively traded derivatives in the world. The CBOE’s decisions around product structure — expiration schedules, strike intervals, contract multipliers — directly shape what strategies are available and how traders can execute them. The introduction of daily expirations for SPX, for instance, was a CBOE regulatory decision that enabled the entire zero-DTE trading ecosystem.

The CBOE also publishes proprietary data products, research, and educational content relevant to options trading. Its real-time indices — including the VIX, SKEW, and various volatility term structure measures — are widely used as market context tools. OPRA, which aggregates options quotes from all U.S. exchanges, distributes CBOE data alongside feeds from other venues.

Market makers who operate on the CBOE receive certain privileges (such as quoting obligations and associated benefits) in exchange for maintaining liquidity in assigned products. Understanding that market makers on the CBOE are structurally required to quote two-sided markets helps explain why SPX and VIX options maintain tight bid-ask spreads even in volatile conditions.

Key Characteristics

• Largest U.S. options exchange: CBOE handles a dominant share of index options volume, particularly for SPX and VIX products.
• Founder of listed options: The CBOE created the first standardized options market in 1973, establishing the framework still used today.
• Creator of the VIX: CBOE designed and publishes the Volatility Index, the most widely referenced measure of market-implied volatility globally.
• SPX home exchange: SPX options are listed exclusively on the CBOE, unlike most equity options that trade across multiple venues.
• Multi-exchange operator: Through acquisitions, CBOE Global Markets operates several distinct exchange venues beyond the flagship CBOE.
• Regulatory influence: CBOE works with the SEC and FINRA on rules governing options trading, product approvals, and market structure standards.
• Data publisher: CBOE publishes real-time volatility indices, settlement values, and research products used throughout the industry.