Cboe and Robinhood plan company-metric binary options for October

Cboe ($CBOE) and Robinhood ($HOOD) plan to introduce binary options linked to company-specific performance indicators, initially covering 23 US-listed companies. The products are expected to launch in October, subject to regulatory approval, with Robinhood serving as the first retail broker to distribute them. Contracts would trade on Cboe’s registered US securities exchange under SEC oversight.

The initiative could expand both companies’ event-driven trading businesses, but approval and customer adoption remain outstanding. The proposed securities-market structure differs from event contracts offered on designated contract markets. Cboe and Robinhood intend to waive product fees through year-end, subject to regulatory review, so initial activity would not translate directly into disclosed fee revenue. Neither company provided a volume target or financial contribution estimate. The proposed launch remains contingent on regulatory clearance, and anticipated customer interest is not a committed trading volume.

Sources:

• Company release via PR Newswire