Chicago Board Options Exchange - CBOE

DEFINITION of 'Chicago Board Options Exchange - CBOE'

Founded in 1973 as the Chicago Board Options Exchange, the Cboe is an exchange that focuses on options contracts for individual equities, indexes and interest rates. The Cboe is the world's largest options market. It captures a majority of the options traded. It is also a market leader in developing new financial products and technological innovation, particularly with electronic trading.

The Cboe is also referred to as the "See-bo".

BREAKING DOWN 'Chicago Board Options Exchange - CBOE'

On the first day of trading in 1973, 911 contracts traded hands on 16 stocks. Today, the Cboe's average daily volume consistently exceeds one million contracts per day.