Cboe Seeks SEC Approval for Earnings-Based Binary Options

MT Newswires Live07-02 07:59

Cboe Global Markets Inc. is seeking US Securities and Exchange Commission approval to list binary options tied to corporate earnings metrics, including SpaceX revenue, Nvidia data center sales and JPMorgan Chase & Co. credit-loss provisions, Bloomberg reported Wednesday, citing a SEC filing.

The "binary KPI options" would settle based on whether a company's reported financial or operating metric met a preset threshold, rather than stock price movement, and would track 23 companies across more than 100 metrics, per the filing, the report said.

Other metrics include Apple Inc. iPhone sales, Coinbase Global Inc. trading volume, and Tesla Inc. Model 3 and Model Y production.

Bloomberg noted the contracts would resemble binary bets already offered on prediction market platforms such as Kalshi and Polymarket, though Cboe, as an SEC-regulated securities exchange, faces stricter listing rules than those CFTC-regulated venues.

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