Cboe Receives SEC Approval for KPI-Based Options Trading

Cboe Global Markets has received approval from the Securities and Exchange Commission (SEC) to list options based on the performance metrics of publicly traded companies. This makes Cboe the first U.S. securities exchange authorized to offer such products. The SEC approved Cboe's rule change on October 13, 2026.

The new options are binary contracts centered around key performance indicators (KPIs) reported by select public companies. If a company's reported metric meets or exceeds a predetermined strike price, the contract pays $1; if it falls short, it pays $0. These options will be cash-settled and European-style, meaning they can only be exercised at expiration.

Initial targets for these options include metrics such as revenue, earnings per share, and operational figures from around 23 actively traded U.S. companies, including Apple and Tesla. The contracts will trade on the Cboe Options Exchange during regular market hours, with prices moving in penny increments.

Cboe's proposal was submitted in early July 2026, with approval coming roughly three months later. The launch is scheduled for October 2026, pending further regulatory authorizations, particularly the temporary registration of Cboe Clear U.S. as a covered clearing agency. Robinhood will be the first retail distributor of these options, and both firms plan to waive fees until the end of 2026, subject to regulatory review.

This launch builds on Cboe's previous entry into prediction markets with Cboe Predicts, which features binary options focused on market indices. The introduction of KPI options allows traders to bet directly on specific metrics without the influence of stock price fluctuations.

As traders await the SEC's decision on Cboe Clear U.S. and the final list of companies and metrics, this development marks a notable shift in the trading landscape.