Cboe, Robinhood Announce Planned Launch of KPI Contracts

Products tied to 23 companies to roll out in October, subject to regulatory approval

Cboe Global Markets, Inc., a leading global markets operator and pioneer in equity and index derivatives, announced at Robinhood's third annual HOOD Summit in Houston, Texas, that it plans to launch a new category of binary contracts tied to company-specific key performance indicators (KPIs), expected in October 2026, subject to regulatory approval. Robinhood will be the first retail broker to offer these products to its clients at launch.

The KPI binary options will provide investors with a new way to take positions on specific company metrics and corporate events through Securities and Exchange Commission (SEC)-regulated products traded on Cboe's registered U.S. securities exchange. This proposed framework differentiates Cboe's products from similar event-based contracts currently traded on designated contract markets (DCMs) and reflects its view that these securities products should be traded within the transparency, oversight and investor protections of the U.S. securities markets, including the benefits of federal preemption of state securities registration requirements.

The planned launch comes amid growing investor demand for products that are intuitive, event-driven and directly based on the companies they follow. Cboe plans to initially list contracts for 23 U.S.-listed companies that represent some of the most actively traded U.S. stocks. Cboe will not charge fees on the KPI binary options through the end of 2026, subject to regulatory review. Robinhood will additionally offer the products with no fees through the end of the year.

JJ Kinahan, Head of Retail Expansion and Alternative Investment Products at Cboe, said: "These KPI contracts are designed to provide exposure to key corporate metrics, giving investors a granular way to trade many of the individual components that are being tracked and driving headlines each quarter. We're pleased to have Robinhood among our first partners in bringing these SEC-regulated products to its client base. As investable event contracts, we believe they will appeal to a broad spectrum of market participants, from systematic traders seeking targeted exposure to retail investors looking to better understand how KPIs can influence a company's performance."

Steve Quirk, Chief Brokerage Officer at Robinhood, said: "Earnings contracts give retail investors another tool to inform their strategies and offer an even more precise way to trade on anticipated company KPIs."

As part of this initiative, Cboe filed an application for temporary registration from the SEC for its U.S. clearinghouse, Cboe Clear U.S., LLC (CCUS), as a Covered Clearing Agency. Subject to regulatory review and approval, CCUS would clear the KPI contracts.

Rob Hocking, Global Head of Derivatives at Cboe, said: "This isn't just about launching a new product, but an example of how Cboe can leverage our strengths across listing, trading and clearing, as well as our history of operating trusted, regulated markets, to help build out the next generation of markets and products. We're particularly excited to expand our U.S. clearing capabilities, which will further strengthen Cboe's competitive position and broaden our ability to support new products – both traditional and non-traditional financial instruments – creating opportunity for even more optionality and innovation."

Following initial registration, CCUS may pursue opportunities, subject to regulatory approval, to expand its clearing services beyond the CFTC-regulated derivatives it clears today to support new products, potentially including tokenized binary security options, reflecting Cboe's broader strategy to expand its U.S. clearing business into new product categories over time.

Source: Cboe

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