Cboe Global Markets Inc. has submitted a request to the US Securities and Exchange Commission (SEC) for authorization to launch a new set of binary options that are linked to corporate performance metrics instead of stock price fluctuations, as reported by Bloomberg.
The envisioned “binary KPI options” will enable traders to adopt an all-or-nothing stance concerning whether a firm reports certain financial or operational benchmarks above or below a specified limit.
Upon approval, these contracts will be settled based on the reported data of the chosen metric rather than alterations in the company’s stock price.
Event-driven Contracts to Enhance Exchange Offerings
The proposed products will be similar to the straightforward contracts currently found on prediction market platforms. However, Cboe’s versions will operate under the SEC’s regulatory framework since the company functions as a securities exchange operator, unlike prediction markets such as Kalshi and Polymarket, which are monitored by the Commodity Futures Trading Commission.
The SEC filing includes over 100 potential performance indicators across 23 companies. Identified metrics in the proposal encompass Apple’s iPhone sales, Coinbase Global’s trading volume, Tesla’s Model 3 and Model Y production, SpaceX revenue, Nvidia’s data center sales, and JPMorgan Chase’s credit-loss provisions.
The list of companies includes:
- Apple
- Advanced Micro Devices
- Alphabet
- Amazon.com
- Bank of America
- Citigroup
- Coinbase Global
- Ford
- Intel
- JPMorgan Chase
- Marathon Digital Holdings
- Meta Platforms
- Microsoft
- Netflix
- Nvidia
- Palantir Technologies
- Robinhood Markets
- SoFi Technologies
- SpaceX
- Super Micro Computer
- Target
- Tesla
- Walt Disney
The initiative awaits regulatory endorsement.
Exchanges Seek More Event-based Products
The proposal comes as exchange operators are persistently rolling out contracts designed to offer traders more tools for exposure management while vying for retail engagement in event-driven markets.
Cboe has recently reintroduced binary options linked to whether the S&P 500 hits a predetermined level, reviving a product that had not been available for over ten years.
Other exchange operators are broadening similar offerings. Nasdaq Inc. has secured regulatory approval for binary index options, with trading expected to commence later this year. Meanwhile, Intercontinental Exchange Inc., parent of the New York Stock Exchange, is launching new futures tied to global monetary policy decisions and US natural gas storage figures.