Federal Register #SR-CBOE-2026-034

SEC Notice of Proposed Rule Change by Cboe Exchange, Inc. to Amend Binary Options Settlement Definition

This notice from the Securities and Exchange Commission (SEC) announces a proposed rule change by Cboe Exchange, Inc. regarding binary options settlement definitions. - Government Buyer: - Securities and Exchange Commission (SEC), a U.S. federal agency - OEMs and Vendors: - Cboe Exchange, Inc. (the only organization named) - Products/Services Requested: - No products or services are being procured; this is a regulatory notice, not a solicitation for goods or services - Key Details: - The proposal seeks to amend the definition of 'Exercise Settlement Amount' for binary options - The minimum exercise settlement value would be reduced from $10 to $1 - With a standard multiplier of 100, this allows binary options to have a settlement amount as low as $100 - The change aligns Cboe's rules with those of other exchanges - The notice is intended to facilitate the listing of binary options on broad-based indexes and promote fair and equitable trading practices - The SEC is soliciting public comments on this regulatory amendment, not seeking procurement responses

Description

The Securities and Exchange Commission (SEC) issued a notice regarding a proposed rule change by Cboe Exchange, Inc. to amend the definition of “Exercise Settlement Amount” for binary options. The amendment proposes to reduce the minimum exercise settlement value from $10 to $1, allowing binary options with a typical multiplier of 100 to have an exercise settlement amount of $100. This change aims to align with similar rules on other exchanges and facilitate the listing of binary options on broad-based indexes. The rule change is intended to promote fair and equitable trading practices and protect investors.

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