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Boxed In
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Cboe Receives SEC Approval for Options Based on Company Performance Metrics
Cboe Global Markets has received approval from the U.S. Securities and Exchange Commission (SEC) to list options linked to the performance metrics of publicly traded companies. This marks the first time a U.S. securities exchange has been authorized to offer such products, with the SEC approving Cboe's rule change on October 13, 2026.
The new options will be binary contracts that pay either $1 or $0 based on whether key performance indicators (KPIs) from approximately 23 U.S.-listed companies meet or exceed predetermined thresholds. Initial targets for these metrics include revenue and earnings per share, with notable companies such as Apple and Tesla expected to be included in the offering. The contracts will be cash-settled and can only be exercised at expiration, simplifying the trading process for investors.
Cboe plans to launch these options in October 2026, pending further regulatory approvals, including the temporary registration of Cboe Clear U.S. as a clearing agency. Robinhood is set to be the first retail distributor of these options, and both companies intend to waive fees through the end of 2026, subject to review. This initiative follows Cboe's earlier introduction of prediction markets in June 2026, expanding its offerings within the regulatory framework overseen by the SEC.
Source: KLEA News