Cboe Options Exchange to list KPI Binary Options

Effective as early as the third quarter of 2026, Cboe Options Exchange (C1) will begin listing cash-settled KPI Binary Options, pending regulatory review and approval of filings by C1 and Cboe Clear U.S. LLC (CCUS). These are CCUS-cleared, European-style binary options that settle based on corporate Key Performance Indicator values sourced from SEC filings like 10-K, 10-Q, and 8-K reports. Initial listings will target some of the most liquid U.S. equities.

KPI Binary Options will trade in penny increments between $0.01 and $1.03 with a contract multiplier of one. The maximum price accommodates transaction costs for options with a fair value of $1.00. At expiration, the payout is either $0.00 for out-of-the-money options or $1.00 for in-the-money options. If the final KPI value exactly matches a strike price, a call at that strike pays $1.00 while a put pays $0.00.

The new options will be listed on Matching Unit 12, associated with the letter "K" in Cboe's symbol conventions. No changes to the FIX or BOE order entry protocols or to the PITCH or TOP data feeds are required. All transactions will clear through CCUS.

Trading will be available during Regular Trading Hours (9:30 a.m. to 4:00 p.m. ET). Expiration date trading hours will depend on company earnings schedules. Companies reporting before the market open will have AM-settled options that stop trading on the day prior to expiration. Companies reporting after the close will have PM-settled options that stop trading at 4:00 p.m. ET on the expiration date.

All C1 Trading Permit Holders (TPHs) will be eligible to trade, provided transactions are cleared through a TPH that is also a CCUS Clearing Member. TPHs will need a clearing guarantee arrangement with such a member. C1 will provide separate Executing Firm IDs (EFIDs) for products cleared via CCUS.

KPI Binary Options are now available for testing in the C1 certification environment using existing FIX or BOE sessions. TPHs should contact the Cboe Trade Desk to enable a new CCUS EFID for testing.