Chicago, September 30 (Reuters/ PRNewswire ) – Cboe Global Markets , Inc . ( Cboe : CBOE ) On Tuesday, at the Robinhood Third HOOD Summit held in Houston, Texas, it was announced that there are plans to launch a new type of binary contract linked to a company's specific key performance indicators ( KPI ), with an expected launch in October 2026, subject to regulatory approval. Robinhood will become the first retail brokerage firm to offer these products to its customers upon launch.
These KPI binary options will provide investors with a new way to take positions on specific company indicators and corporate events by trading products that are registered on the US stock exchanges and regulated by the US Securities and Exchange Commission (SEC) through Cboe. Cboe indicates that this proposed framework distinguishes its products from similar event-based contracts currently traded on designated contract markets (DCM), and reflects its view that such securities products should be traded within the framework of transparency, regulatory oversight, and investor protection of the US securities market, which includes exemptions from state securities registration requirements brought about by federal pre-emptive rights.
At the time of this launch, investors' demand for intuitive, event-driven products that are directly based on their interest in the companies they follow is growing. The Cboe plan initially will offer contracts for 23 publicly traded companies in the United States, which represent some of the most actively traded stocks in America. Cboe indicates that no fees will be charged for KPI binary options until the end of 2026, but regulatory review is required. Robinhood will also provide fee-free trading until the end of this year.
Cboe, the head of retail expansion and alternative investment products, JJ Kinahan stated: "These KPI contracts are designed to provide investors with exposure to key corporate indicators, allowing them to trade more meticulously the various components that are tracked quarterly and drive headlines. We are delighted that Robinhood has become one of our earliest partners in bringing these SEC regulated products to their customer base. As investable event contracts, we believe they will attract a wide range of market participants, from systematic traders seeking targeted exposure to retail investors who wish to better understand how KPI affects company performance."
Robinhood Chief Broker Steve Quirk stated: "The financial reporting contract provides retail investors with another tool to assist their strategies and offers a more precise way to trade in the anticipated company KPI."
As part of this plan, Cboe has applied to SEC for the temporary registration of its US clearing institution, Cboe Clear U .S., LLC ( CCUS ), to act as the covered clearing institution. If regulatory review and approval are obtained, CCUS will provide clearing services for these KPI contracts.
Cboe, the Global Derivatives Director, stated: "This is not just about launching a new product; it is also an example of how Cboe can leverage our strengths in listing, trading, and clearing, as well as our history of operating credible and regulated markets, to help build the next generation of markets and products. We are particularly looking forward to expanding our clearing capabilities in the United States, which will further enhance Cboe's competitive position and expand our ability to support new products—whether they are traditional or non-traditional financial instruments—thus creating more choices and opportunities for innovation."
After completing the initial registration, CCUS may seek opportunities to expand its clearing services from the currently cleared derivatives, which are regulated by CFTC, to support new products, potentially including tokenized binary securities options, subject to regulatory approval. This reflects Cboe's broader strategy of expanding its US clearing business to new product categories over time.
About Cboe Global Markets
Cboe Global Markets ( Cboe : CBOE ) is a leading global market operator with a long history of innovation in stocks and index derivatives. Since the launch of the world's first listed options exchange in 1973, Cboe has been at the forefront of creating milestone products, including the introduction of S&P 500® index options and the creation of the VIX ® index – a globally leading measure of market volatility – which has reshaped the way investors manage risk and seize opportunities. Today, Cboe operates derivatives, stock, and foreign exchange markets, providing trading, clearing, and investment solutions to customers around the world. For more information, please visit www.cboe.com.
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