Opportunity
Federal Register #SR-CBOE-2026-061
SEC Review of Cboe Exchange Proposal for Binary KPI Options on Major Public Companies
Buyer
Securities and Exchange Commission
Posted
July 15, 2026
Respond By
August 05, 2026
Identifier
SR-CBOE-2026-061
NAICS
523210
This opportunity concerns a proposed rule change by the Securities and Exchange Commission (SEC) regarding the Cboe Exchange, Inc.: - The SEC is reviewing a Cboe Exchange proposal to list and trade binary options based on key performance indicators (KPIs) reported by major public companies - Binary KPI options are European-style, cash-settled contracts with a fixed $1 payout if a specified KPI meets or exceeds a pre-set strike price at expiration - Eligible issuers for these options include Apple, Amazon, Tesla, Microsoft, Space Exploration Technologies Corp, Super Micro Computer, Inc, and Target Corporation - The proposal details contract terms such as exercise price, settlement type (A.M. or P.M.), contract multiplier, expiration periods (up to 12 months), and position limits - Cboe Clear US, LLC is named as the clearing corporation for these contracts - The rule change aims to provide a transparent, regulated alternative to over-the-counter (OTC) binary options, enhancing investor tools for hedging and price discovery - No specific product purchases or service quantities are requested; the notice is for public comment on the proposed rule change
Description
The Securities and Exchange Commission has published a notice regarding a proposed rule change by Cboe Exchange, Inc. to amend its rules to permit the listing of binary options based on key performance indicators (KPIs) reported by certain issuers of stock. These binary KPI options are European-style, cash-settled options with exercise settlement values determined by whether a specific financial or operating metric meets or exceeds a pre-specified strike level. The proposal includes definitions, terms, and conditions for these options, including settlement types, exercise prices, and contract multipliers. The Exchange may list binary KPI options for designated issuers and establish permissible terms and expirations for these options.