Cboe Seeks SEC Approval for Binary Options on Company KPIs, Including Coinbase Volume
Summary
- Cboe filed for SEC approval to list a new form of binary options, called Binary KPI Options, tied to corporate earnings results.
- The products would track whether key performance indicators (KPIs) exceed preset thresholds rather than stock-price moves, and would include metrics such as Coinbase trading volume, SpaceX revenue and Nvidia data center revenue.
- Traditional exchanges are rolling out event-based investment products similar to prediction markets, with Cboe, Nasdaq and ICE preparing to launch index-based binary options and new futures products.
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Cboe Global Markets is seeking to list a new type of binary option tied to corporate earnings metrics.
Bloomberg reported on July 1 that Cboe filed with the US Securities and Exchange Commission to win approval for listing Binary KPI Options. The products would pay out based on whether financial and operating metrics reported by companies meet preset thresholds.
The contracts would not be tied to stock-price moves. Instead, they would hinge on whether key performance indicators exceed specific benchmarks. The covered metrics include SpaceX revenue, Nvidia data center revenue, Apple iPhone sales, Tesla Model 3 and Model Y production, JPMorgan's loan-loss provisions and Coinbase trading volume.
Cboe plans to launch the products based on 23 companies and more than 100 earnings metrics.
The contracts resemble prediction-market products such as Kalshi and Polymarket, which allow users to bet on yes-or-no outcomes, but they would operate under a different regulatory framework. Kalshi and Polymarket are overseen by the US Commodity Futures Trading Commission, while Cboe, as a securities exchange, must obtain SEC approval.
Traditional exchanges have recently been rolling out event-driven investment products similar to prediction markets as they seek to capture retail demand. Cboe last week relaunched binary options tied to whether the S&P 500 reaches a specific level for the first time in more than a decade, and Nasdaq plans to launch index-based binary options later this year. Intercontinental Exchange, the parent of the New York Stock Exchange, is also preparing new futures products tied to monetary policy and US natural gas inventories.
