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      SEC Approves Listing of Binary Options Based on Key Performance Indicators

      On October 13, 2026, the U.S. Securities and Exchange Commission (SEC) announced its approval of a proposed rule change that allows a securities exchange to list binary options based on specific key performance indicators (KPIs) reported by certain stock issuers. This decision marks a significant development in the trading of binary options in the United States.

      The approved binary KPI options will be classified as cash-settled, European-style, standardized options and recognized as National Market System (NMS) securities, which are protected under U.S. securities law. Their trading methods will closely resemble those of existing standardized non-binary options and will adhere to the exchange's established rules regarding customer accounts, margin requirements, trading halts, and other operational protocols.

      It is important to note that this approval pertains solely to the specific binary option contracts that comply with securities law and does not extend to similar products based on the same KPIs with different structures. Additionally, the SEC's approval does not affect the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) over contracts based on the same KPIs that are designed to fall under its regulatory framework.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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