Add as a preferred source on GoogleSEC Votes to Approve Exchange Listing of Binary Options Tied to KPIs
The proposed contracts would be cash-settled, European-style options subject to securities exchange rules and investor protections.
The Securities and Exchange Commission voted Oct. 13, 2026, to approve a security exchange’s proposed rule change allowing it to list binary options tied to specified key performance indicators reported by certain stock issuers.
The contracts would be standardized, cash-settled and European-style options. They would trade on a securities exchange as national market system securities and remain subject to securities-law protections.
Exchange rules would govern customer accounts, margin requirements, trading halts, auctions, order types and market-maker obligations for the options. The approval applies only to the specified contracts listed on an exchange that lists and trades standardized securities options.
The order does not cover similar products structured differently, nor does it rule out Commodity Futures Trading Commission jurisdiction over KPI contracts designed to fall under that agency’s authority.
SEC Chair Paul S. Atkins characterized the approval as reflecting a new spirit of coordination between the SEC and CFTC. He said past jurisdictional disputes had frustrated innovation and left potential financial products unrealized.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.