Overview
- The SEC voted to approve Cboe’s rule change in mid-October, allowing the exchange to list standardized, cash-settled binary options that pay $1 if a reported metric meets a preset threshold and $0 if it does not.
- The contracts are European-style binaries that settle using figures from official SEC filings such as 10-Ks, 10-Qs and 8-Ks, and prices will trade in penny increments to reflect market odds.
- The initial program lists more than 100 metrics across about 23 companies, including Apple, Nvidia, Tesla, Coinbase, Robinhood and MARA, covering revenue, production and customer or volume measures.
- Trading cannot begin until Cboe Clear U.S. secures temporary registration as a covered clearing agency and regulators complete reviews of planned fee waivers proposed by Cboe and Robinhood through Dec. 31, 2026.
- The SEC approval places these KPI options under securities rules rather than CFTC event-market rules, so observers should watch the clearing decision, final contract terms, fee-waiver rulings and potential investor-protection or market-behavior concerns from all-or-nothing settlements.