Last Updated on 23 July, 2024 by Trading System

The biggest option exchanges in the world

1. Chicago Board Options Exchange (CBOE), United States – Largest options exchange in the world with an average daily volume of 17 million contracts.

2. Euronext Amsterdam Options Exchange (AEX), Netherlands – Second largest options exchange in Europe, trading 8 million contracts a day.

3. NYSE American Options (AMEX), United States – Third-largest options exchange in the world, trading over 7 million contracts each day.

4. NYSE Arca Options (ARCA), United States – Fourth-largest options exchange in the world, trading over 6 million contracts each day.

5. Borsa Italiana Options Exchange (IDEM), Italy – Fifth-largest options exchange in Europe, trading over 5 million contracts each day.

6. Deutsche Börse Derivatives Market (DTB), Germany – Sixth-largest options exchange in Europe, trading over 4 million contracts each day.

7. Tokyo Stock Exchange Options Market (OSK), Japan – Seventh-largest options exchange in Asia, trading over 3 million contracts each day.

8. National Stock Exchange of India Options Exchange (NSE), India – Eighth-largest options exchange in Asia, trading over 2 million contracts each day.

9. Euronext Paris Options Exchange (MONEP), France – Ninth-largest options exchange in Europe, trading over 1 million contracts each day.

10. Toronto Stock Exchange Options Market (TSX), Canada – Tenth-largest options exchange in the world, trading over 1 million contracts each day.

11. Korea Exchange Options Market (KOSPI), South Korea – Eleventh-largest options exchange in Asia, trading over 0.7 million contracts each day.

12. Hong Kong Exchanges and Clearing Options Market (HKEx), China – Twelfth-largest options exchange in Asia, trading over 0.6 million contracts each day.

13. SIX Swiss Exchange Options Market (SIX), Switzerland – Thirteenth-largest options exchange in Europe, trading over 0.5 million contracts each day.

14. Singapore Exchange Options Market (SGX), Singapore – Fourteenth-largest options exchange in Asia, trading over 0.4 million contracts each day.

15. Taiwan Stock Exchange Options Market (TWSE), Taiwan – Fifteenth-largest options exchange in Asia, trading over 0.3 million contracts each day.

16. Australian Securities Exchange Options Market (ASX), Australia – Sixteenth-largest options exchange in the world, trading over 0.3 million contracts each day.

17. Shanghai Stock Exchange Options Market (SSE), China – Seventeenth-largest options exchange in Asia, trading over 0.2 million contracts each day.

18. London Stock Exchange Options Market (LSE), United Kingdom – Eighteenth-largest options exchange in Europe, trading over 0.2 million contracts each day.

19. B3 Options Market (B3), Brazil – Nineteenth-largest options exchange in the world, trading over 0.2 million contracts each day.

20. Bombay Stock Exchange Options Market (BSE), India – Twentieth-largest options exchange in Asia, trading over 0.1 million contracts each day.

History of options on exchanges

Options trading has a long history on exchanges, with the first modern exchange-traded options originating in 1973 on the Chicago Board Options Exchange (CBOE). Options trading was created as a way for investors to hedge their risks when trading stocks and other financial instruments. Options can be used to protect against the risk of a stock’s price dropping, or to leverage one’s investments by taking a position without having to buy the underlying asset.

In the early days of options trading, the CBOE was the only exchange offering options contracts. Over time, other exchanges began offering options as well, such as the American Stock Exchange (AMEX) in 1977 and the Philadelphia Stock Exchange (PHLX) in 1980. Each exchange offered different types of options contracts and traded different types of options.

As options trading grew in popularity, exchanges began to offer a wider range of options contracts, including index options, foreign currency options, and even options on futures. In addition, the development of electronic trading platforms made it easier for investors to trade options, and exchanges began to offer more sophisticated trading tools such as options analytics and automated trading systems.

Today, options trading is a global phenomenon, with investors around the world trading options on exchanges in the United States, Europe, and Asia. While the complexity of options trading has grown over the years, it still remains an important tool for investors looking to manage their risks and leverage their investments.

What are options?

Options are securities that give the holder the right, but not the obligation, to buy or sell a specified quantity of an underlying asset at a predetermined price within a certain period of time. They are often used to hedge against the risk of an uncertain or volatile market.

Options can be either call options or put options. A call option gives the holder the right to buy an underlying asset at a predetermined price, while a put option gives the holder the right to sell an underlying asset at a predetermined price.

Options are often used by investors to manage risk. By buying a call option, the investor can profit if the market goes up, while limiting their downside risk if the market goes down. Similarly, by buying a put option, the investor can profit if the market goes down, while limiting their downside risk if the market goes up.

Options can also be used for speculation. By buying call and put options, investors can speculate on the direction of a particular security or market without having to own the underlying asset. This enables investors to take advantage of market movements without taking on the risk of owning the underlying asset.

Options can also be used for hedging. By selling call and put options, investors can protect their existing portfolios from losses due to market declines. This can help investors to maintain their desired level of risk.

Options are complex and risky instruments, and they should only be used by experienced investors. Before investing in options, investors should understand the risks involved and ensure that they have sufficient capital to cover any losses they may incur.

Summary of the biggest option exchanges globally

While the 20 biggest option exchanges are all different, they all had one thing in common: the ability to offer investors a wide variety of options to trade.

The first of these exchanges was the Chicago Board Options Exchange (CBOE). This exchange was founded in 1973 and was the first exchange to offer options trading. The CBOE was the first to introduce the standardized options contract, which allowed investors to purchase and sell securities with the same terms and conditions. The exchange also established the Volatility Index (VIX), which is still used today to measure implied volatility.

The second-largest option exchange in the world is the International Securities Exchange (ISE). This exchange was founded in 2000 and is the only fully electronic options exchange in the world. The ISE offers a variety of options, including equity options, index options, and currency options.

The third-largest option exchange is the Nasdaq Options Market (NOM). This exchange was founded in 2001 and is the only exchange to offer options on all Nasdaq-listed stocks. The NOM also offers options on over-the-counter (OTC) stocks.

The fourth-largest option exchange is the Philadelphia Stock Exchange (PHLX). This exchange was founded in 1790 and is the oldest stock exchange in the United States. The PHLX offers options on stocks, ETFs, indices, and commodities.

The fifth-largest option exchange is the Chicago Mercantile Exchange (CME). This exchange was founded in 1898 and is the largest futures and options exchange in the world. The CME offers options on futures contracts and a variety of other derivatives.

The sixth-largest option exchange is the Options Clearing Corporation (OCC). This is the only clearinghouse that is approved by the Securities and Exchange Commission (SEC). The OCC serves as the counterparty to all options trades and guarantees the payment of all options contracts.

The seventh-largest option exchange is the Tokyo Stock Exchange (TSE). This exchange was founded in 1878 and is the largest stock exchange in Japan. The TSE offers options on a variety of Japanese stocks and ETFs.

The eighth-largest option exchange is the London Stock Exchange (LSE). This exchange was founded in 1801 and is the oldest and largest stock exchange in the United Kingdom. The LSE offers options on a variety of UK stocks and ETFs.

The ninth-largest option exchange is the Osaka Securities Exchange (OSE). This exchange was founded in 1889 and is the largest stock exchange in Japan. The OSE offers options on a variety of Japanese stocks and ETFs.

The tenth-largest option exchange is the Euronext Amsterdam (EAM). This exchange was founded in 2000 and is the largest stock exchange in the Netherlands. The EAM offers options on a variety of European stocks and ETFs.

The eleventh-largest option exchange is the Toronto Stock Exchange (TSX). This exchange was founded in 1834 and is the largest stock exchange in Canada. The TSX offers options on a variety of Canadian stocks and ETFs.

The twelfth-largest option exchange is the Australian Securities Exchange (ASX). This exchange was founded in 1987 and is the largest stock exchange in Australia. The ASX offers options on a variety of Australian stocks and ETFs.

The thirteenth-largest option exchange is the Singapore Exchange (SGX). This exchange was founded in 1999 and is the largest stock exchange in Singapore. The SGX offers options on a variety of Asian stocks and ETFs.

The fourteenth-largest option exchange is the Bombay Stock Exchange (BSE). This exchange was founded in 1875 and is the largest stock exchange in India. The BSE offers options on a variety of Indian stocks and ETFs.

The fifteenth-largest option exchange is the Hong Kong Stock Exchange (HKEX). This exchange was founded in 1891 and is the largest stock exchange in Hong Kong. The HKEX offers options on a variety of Chinese stocks and ETFs.

The sixteenth-largest option exchange is the National Stock Exchange of India (NSE). This exchange was founded in 1992 and is the second-largest stock exchange in India. The NSE offers options on a variety of Indian stocks and ETFs.

The seventeenth-largest option exchange is the SIX Swiss Exchange (SIX). This exchange was founded in 1995 and is the largest stock exchange in Switzerland. The SIX offers options on a variety of European stocks and ETFs.

The eighteenth-largest option exchange is the Osaka Exchange (OSE). This exchange was founded in 2001 and is the largest stock exchange in Japan. The OSE offers options on a variety of Japanese stocks and ETFs.

The nineteenth-largest option exchange is the Taiwan Stock Exchange (TWSE). This exchange was founded in 1961 and is the largest stock exchange in Taiwan. The TWSE offers options on a variety of Chinese stocks and ETFs.

The twentieth-largest option exchange is the Shanghai Stock Exchange (SSE). This exchange was founded in 1990 and is the largest stock exchange in China. The SSE offers options on a variety of Chinese stocks and ETFs.

These twenty exchanges offer investors a wide variety of options to trade. From stocks and ETFs to futures and commodities, these exchanges provide investors with the opportunity to diversify their portfolios and take advantage of different market opportunities.