2026-11282NoticeWallet

SEC Delays Decision on Cboe Binary Options Expansion

Published Date: 6/5/2026

Notice

Summary

The Cboe Exchange wants to update its rules to let traders buy and sell binary options on more indexes, with flexible settlement times and new position limits. The SEC is taking extra time, until July 19, 2026, to review these changes carefully. This affects traders and could impact how they manage risk and trade binary options on the Exchange.

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

More Indexes Eligible for Binary Options

The Cboe Exchange proposed letting traders list and trade binary options on any index where Cboe already lists regular (non-binary) options. If adopted, this would expand the set of indexes on which binary options can be offered on the Exchange.

Allow A.M. and P.M. Settlement Times

The proposed rule would permit both A.M. and P.M. settlement for all binary index options traded on Cboe. This gives traders explicit flexibility over whether those binary index options settle in the morning or the afternoon.

Position Limits Set Per Expiration

The Exchange proposed to amend position limits for binary index options so the limits apply on a per-expiration basis. The change would alter how position size is measured across expirations for these binary products and could affect how traders manage risk and construct positions.

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Key Dates

Published Date
6/5/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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