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Get to know First Options of Chicago, Inc.

First Options of Chicago, Inc. was one of the largest clearing members of the Chicago Board Options Exchange (CBOE) and other major U.S. exchanges. Its primary business was to act as a clearinghouse and guarantor for trades executed by its clients, who were primarily professional traders and other brokerage firms. The company played a critical role in the market's infrastructure by assuming the counterparty risk for these trades. However, during the severe market downturn on "Black Monday," October 19, 1987, many of its clients suffered catastrophic losses and were unable to meet their margin calls, leading to the insolvency of First Options. To prevent a systemic collapse of the financial system, a consortium of other clearing firms and banks, organized by the exchanges and backed by the Federal Reserve, orchestrated a bailout. The firm was subsequently acquired by Spear, Leeds & Kellogg in 1988, which itself was later acquired by Goldman Sachs in 2000.

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First Options of Chicago, Inc.

United States

Founded in

1975 (51 Years)

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Last online: No recent activity

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BridgerPay

(180 reviews)

Cyprus

2017

(9 years)

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A Grade License

Issued by globally renowned regulators, these licenses ensure the highest trader protection through strict compliance, fund segregation, insurance, and regular audits. Dispute resolution and adherence to AML/CTF standards further enhance security.

B Grade License

Granted by respected regional regulators, these licenses offer robust safety measures such as fund segregation, financial reporting, and compensation schemes. Though slightly less strict than Tier 1, they provide dependable regional protection.

C Grade License

Issued by regulators in emerging markets, these licenses offer basic protections such as minimum capital requirements and AML policies. Oversight is less stringent, so traders should exercise caution and verify safety measures.

D Grade License

From jurisdictions with minimal oversight, these licenses often lack key protections like fund segregation and insurance. While attractive for operational flexibility, they pose higher risks to traders.

TrustFinance is not a licensed financial advisor and is not affiliated with any financial institutions in your region. We encourage you to do your own research before making any investment decisions.