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Cboe Global Markets Inc. has filed with the US Securities and Exchange Commission (SEC) for approval to introduce a new class of binary options linked to corporate performance indicators rather than stock-price movements, according to a Bloomberg report.
The proposed “binary KPI options” would allow traders to take an all-or-nothing position on whether a company reports a specific financial or operating metric above or below a predetermined threshold.
If approved, the contracts would settle based on the reported result of the selected metric instead of changes in the company’s share price.
Event-driven contracts expand exchange offerings
The proposed products would resemble the yes-or-no contracts already available on prediction market platforms. However, Cboe’s offering would operate under the SEC’s regulatory framework because the company is a securities exchange operator, unlike prediction market operators such as Kalshi and Polymarket, which fall under the oversight of the Commodity Futures Trading Commission.
The SEC filing covers more than 100 potential performance indicators across 23 companies. Metrics identified in the proposal include 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.
According to the filing, 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 proposal remains subject to regulatory approval.
Exchanges pursue additional event-based products
The proposal arrives as exchange operators continue introducing contracts designed to provide traders with additional tools for managing exposure while competing for retail participation in event-based markets.
Cboe recently reintroduced binary options tied to whether the S&P 500 reaches a specified level, bringing back a product that had been unavailable for more than a decade.
Other exchange operators are also expanding similar offerings. Nasdaq Inc. has already received regulatory approval for binary index options, with those contracts expected to begin trading later this year. Meanwhile, Intercontinental Exchange Inc., the parent company of the New York Stock Exchange, is introducing new futures contracts linked to global monetary policy decisions and US natural gas storage levels.
If approved by the SEC, Cboe’s binary KPI options would extend event-based trading beyond economic indicators and market indexes by allowing market participants to take positions on specific corporate earnings metrics reported during quarterly financial results.