Opportunity
Federal Register #SR-NYSEARCA-2026-93
SEC Review of NYSE Arca Proposal for Binary KPI Options Trading
Buyer
Securities and Exchange Commission
Posted
September 18, 2026
Identifier
SR-NYSEARCA-2026-93
NAICS
523210
The Securities and Exchange Commission (SEC) is reviewing a proposed rule change from NYSE Arca, Inc. to permit the listing and trading of binary KPI options tied to issuer performance metrics. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Exchanges Mentioned: - NYSE Arca, Inc. - Cboe Exchange, Inc. (Cboe) - MEMX LLC (MEMX) - NYSE American - Products/Services Requested: - Binary KPI Options - European-style, cash-settled options contracts - Based on key performance indicators (KPIs) disclosed in SEC filings by issuers - KPIs include earnings per share, net sales, segment revenue, operating margin, and other financial metrics - Eligible issuers: Apple, Amazon, Microsoft, Tesla, and others - No specific purchase quantities; framework for future trading - Unique/Notable Requirements: - Options pay a fixed amount if the KPI meets or exceeds a pre-specified strike level at expiration - Expiration dates tied to issuer earnings release dates - Settlement types may be designated as A.M. or P.M. based on earnings disclosure timing - Regulatory safeguards and position limits included to ensure market integrity and investor protection - Public comments solicited on the proposed rule change
Description
This notice from the Securities and Exchange Commission announces a proposed rule change by NYSE Arca, Inc. to permit the listing of binary KPI options. These are European-style, cash-settled options contracts based on key performance indicators (KPIs) of issuers, where the payout depends on whether a specific financial or operating metric meets or exceeds a pre-specified strike level. The proposal includes definitions, terms, and conditions for trading these options, including settlement types, exercise prices, and expiration dates. The rule change aims to allow trading of binary options tied to issuer KPIs disclosed in earnings-related filings with the SEC.