The U.S. Securities and Exchange Commission approved a rule change on October 14, 2026, allowing Cboe Global Markets to list and trade binary options tied to key performance indicators reported by public companies. Cboe becomes the first securities exchange cleared to offer this product type.
The contracts function as yes-or-no wagers on whether a company's reported metric will meet or exceed a predetermined threshold. If the metric clears the bar, the contract pays $1; if not, it pays $0. The answer is determined by figures companies report in their SEC filings.
The initial product lineup covers more than 100 metrics across 23 companies, including Coinbase, Nvidia, Tesla, and Apple. Specific metrics include Coinbase's trading volume, Nvidia's data-center revenue, and Tesla's vehicle deliveries.
Robinhood Markets will be the first retail broker to distribute the contracts. Both Cboe and Robinhood plan to waive fees on the products until December 31, 2026, subject to regulatory review.
The contracts remain unapproved for trading pending Cboe Clear U.S.'s temporary registration to handle clearing operations.
Regulatory Framework
These products fall under existing securities-options investor protections, distinguishing them from event contracts overseen by the Commodity Futures Trading Commission.
Market Response
Following the announcement, Cboe shares rose more than 4%, while Robinhood shares fell nearly 9%.
Coinbase's trading volume inclusion on the metric list creates a direct connection to cryptocurrency market activity, allowing traders to wager on the exchange's performance without taking on Coinbase stock risk.
