Federal Register #SR-CBOE-2026-032

Proposed Rule Change by Cboe Exchange, Inc. for Binary Options Eligibility and Settlement

This notice announces a proposed rule change by Cboe Exchange, Inc. regarding binary options, as published by the Securities and Exchange Commission (SEC). - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - Cboe Exchange, Inc. (the only organization mentioned) - Key Proposal Details: - Expands eligibility for binary options to any index eligible for traditional options trading on the Exchange, not just broad-based indexes - Permits both A.M.-settlement and P.M.-settlement for all binary options - Adjusts position limits based on the characteristics of the underlying index - Aims to provide investors with greater access to simplified, limited-risk binary options products - Notable Requirements: - This is a regulatory notice, not a procurement opportunity - No products, services, part numbers, or purchase quantities are requested

Description

This notice announces a proposed rule change filed by Cboe Exchange, Inc. to amend its rules concerning binary options. The amendments include expanding the eligibility of indexes for binary options beyond broad-based indexes to any index eligible for traditional options trading on the Exchange. Additionally, the proposal allows for both A.M.-settlement and P.M.-settlement for all binary options and adjusts position limits accordingly. The changes aim to provide investors with greater access to simplified, limited-risk binary options products.

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