CBOE Holdings Inc. claims it is the largest option exchange in the United States. The company, in addition to its core options trading business, provides marketplaces for trading futures contracts and cash equities through its subsidiary, CBOE Futures Exchange, and its affiliate CBOE Stock Exchange. During the year ended December 31, 2009, the volume of options contracts traded at the Chicago Board Options Exchange (CBOE) was 1.13 billion, or 4.5 million contracts per day.
The company trades options with terms of up to nine months on the stocks of over 2,300 corporations that are listed on the New York Stock Exchange (NYSE), NYSE Amex, LLC (NYSE Amex) and National Association of Securities Dealers Automated Quotation (NASDAQ). In addition, it also trades long-term options, known as Long-term Equity AnticiPation Securities (LEAPS), on approximately 800 stocks with terms of up to 39 months. It trades options on 10 different broad- and narrow-based market indexes, including indexes that it has developed, such as the CBOE S&P 500 Volatility Index (VIX). The index options it trades include some of the measures of the United States equity markets, such as the S&P 500, the Dow Jones Industrial Average (DJIA), the NASDAQ 100 and the Russell 2000. It trades options on approximately 200 exchange-traded funds (ETFs), based on various domestic and foreign market indexes. It also trades LEAPS on 66 ETFs.
The company competes with NYSE Amex, Boston Options Exchange (BOX), International Securities Exchange, Inc. (ISE), NYSE Arca, Inc. (NYSE Arca), NASDAQ OMX NASDAQ OMX PHLX, Inc. (PHLX), NASDAQ Options Market (NOM) and BATS Trading Inc. (BATS).
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CBOE Holdings and Nasdaq OMX Group may scramble to find deal partners as global exchanges’ merger mania returns with a bang.
Germany’s Deutsche Boerse announced on Wednesday it was in advanced talks to buy NYSE Euronext, hours after the London Stock Exchange said it had agreed to buy Canadian stock market operator TMX.
The deals sent shares of exchanges up across the board as investors bet more is to come. Get the full story »
Edmund O'Connor, third from left, then CBOE's vice chairman, at bell-ringing ceremony to mark the opening of the CBOE's second trading floor in 1974. (Courtesy CBOE)
Edmund O’Connor, the architect of the Chicago Board Options Exchange and for decades a major figure in Chicago’s derivatives-trading community, died early Monday. Get the full story »
The Chicago Board Options Exchange wants investors to measure the “fear” baked into stock options such as those of Goldman Sachs or Apple.
The exchange said Wednesday it will apply the methods of its “fear index” to options on five popular stocks, the other three being Amazon.com, International Business Machines Corp., and Google. The measure, whose formal name is the CBOE Volatility Index, or VIX, shot to fame during the financial crisis as investors sought tools to measure and trade in an anxious and plunging stock market. Get the full story »
CBOE Holdings is setting a low bar for success at its newly launched electronic exchange, with officials saying they expect to capture just 1 to 2 percent of the total U.S. options market in 2011.
“There’s an opportunity there,” CBOE Executive Vice-Chairman Edward Tilly told reporters over lunch. “It may take some time to develop.”
C2, as the new exchange is known, garnered 0.7 percent of the market in December, its second full month of operation, figures from the Options Clearing Corp show. There are nine U.S. options exchanges. Get the full story »
CBOE CEO William J. Brodsky (center), facing camera, kicks off CBOE's first day as a publicly-traded company on the NASDAQ on June 15, 2010. (José M. Osorio/Chicago Tribune)
CBOE Holdings Inc. CEO William Brodsky said he is open to growth by acquisition, but added that the exchange operator’s tendency to build its own systems rather than buy them has saved shareholders money.
Asked at a conference hosted by Goldman Sachs if he would consider making acquisitions, Brodsky said, “We are certainly open to that. We are looking at things strategically in ways we couldn’t have six months ago.” Get the full story »
U.S. regulators are considering a three-month extension to their pilot program that gives stocks a reprieve when they are in freefall, people familiar with the situation said on Thursday.
The Securities and Exchange Commission’s circuit breaker program expires Dec. 10 and the regulator is under pressure to find permanent solutions to bolster market integrity after the May “flash crash.” Get the full story »
The CBOE Futures Exchange, a subsidiary of CBOE Holdings Inc., said on Tuesday that it has changed the daily opening time for the trading of futures on the CBOE Volatility Index. VIX effective Dec. 10, pending regulatory approval. Get the full story »
CBOE Holdings Inc. said its two offers for nearly 12 million shares of class A-1 and class A-2 common stock exceeded the maximum tender amount.
About 12.4 million of class A-1 common stock and 13.6 million of class A-2 common stock were validly tendered and not withdrawn, according to the final count by BNY Mellon Shareowner Services, which is handling the tender offer. Get the full story »
The head of the largest U.S. options exchange said a regulator report falls short of explaining what happened in the May “flash crash,” adding to skepticism that has grown since it was released October 1. Get the full story »
CBOE Holdings Inc., which operates the biggest U.S. market for stock and stock-index options, said profit last quarter rose 41 percent, driven by new trading access fees and lower expenses. Get the full story »
U.S. stocks could see big swings to the downside next week on any remotely “bad” news since volatility indexes are at levels considered too low.
The Chicago Board of Options Exchange Volatility Index, a gauge widely used to measure investors’ anxiety levels, fell 2.54 percent on Friday to close at 18.78, its lowest level since April. The VIX, which rose to near 50 in May, has been around or under 20 for the past two weeks. Investors also will face a blizzard of earnings, which many analysts believe will continue to support the rally that began early this month. But any disappointments in either earnings or outlooks could, of course, trigger a sharp sell-off. Get the full story »
