The US Securities and Exchange Commission has approved Cboe's proposal to list binary options tied to corporate performance indicators. Robinhood plans to be the first retail broker to offer them, but trading has not begun and a clearing application remains pending.
The SEC approved Cboe's proposal for listing binary options tied to key performance indicators reported by selected stock issuers. Cboe submitted the proposed rule change in July 2026.
Once launched, the contracts would let investors trade on reported business metrics rather than on how a company's share price reacts to them. However, trading has not begun, and a separate application to clear the products remains pending.
Over 100 metrics across 23 companies
The approved list contains over 100 metrics across 23 companies, including Apple's iPhone revenue, Nvidia's data-centre revenue, Tesla's Model 3/Y production and Robinhood's funded-customer count. Each contract settles according to whether a company reports a particular indicator above or below a predefined threshold.
Cboe's products will be cash-settled, European-style options, so holders can exercise them only at expiration. A successful contract pays a fixed $1, while an unsuccessful one expires without a payout.
Settlement will use the metric in the company's relevant SEC filing, rather than an earlier earnings press release. Cboe can decide which contracts to list and set several thresholds around the most recently reported value.
A securities route to prediction-style trading
The product takes a different regulatory route from event contracts offered through platforms such as Kalshi. Those markets operate on Commodity Futures Trading Commission-regulated exchanges, while Cboe's KPI contracts will be securities listed on an SEC-regulated options exchange.
Cboe and Robinhood had targeted an October launch, though the exact date has not been disclosed. Cboe plans to waive its exchange fees on the contracts through 2026, subject to regulatory review. Robinhood says it won't charge fees through year-end.
Before trading starts, Cboe Clear U.S. needs to obtain temporary registration to clear the contracts.
Source: Finance Magnates
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