2026-14979NoticeWallet

Cboe Seeks Temporary Nod to Clear Binary Options

Published Date: 7/24/2026

Notice

Summary

Cboe Clear U.S., LLC wants to become a temporary official clearing agency to handle special financial contracts called binary options. This change affects traders and companies dealing with these contracts by adding a trusted middleman to make sure trades settle smoothly. The SEC is reviewing the application and asking for public feedback before making a final decision.

Analyzed Economic Effects

5 provisions identified: 1 benefits, 3 costs, 1 mixed.

Possible large member assessments on default

CCUS's Rules permit assessments on non‑defaulting clearing members if initial margin, guaranty fund deposits, CCUS contributed capital, and mutualized guaranty fund are exhausted. For a single clearing member default, CCUS may assess non‑defaulting members up to 300% of their required guarantee fund deposit; for multiple defaults, up to 600%.

Clearing membership limited to broker‑dealers

CCUS's Rules require clearing members for Securities Contracts (including KPI Binary Options) to be registered broker‑dealers under the Exchange Act. CCUS requests temporary registration relief from certain Exchange Act participant‑category requirements during its temporary registration period.

Binary options fully margined with $0/$1 payouts

CCUS will clear binary security options that have bounded payouts of $0.00 or a maximum of $1.00 and will treat them as fully margined. CCUS does not require prefunding of margin, so it will have intraday exposure before daily settlement, mitigated by real‑time margining and its default waterfall.

CCUS seeks temporary clearing role for binary options

CCUS applied (filed June 30, 2026; amended July 7 and July 17, 2026) to register temporarily as a clearing agency under Section 17A to provide central counterparty services for binary security options, including KPI Binary Options that would trade on Cboe Exchange. The SEC is soliciting public comment before deciding on CCUS's request.

New per‑contract clearing fee

CCUS proposes a new clearing fee of $0.0002 (2 basis points) per KPI Binary Option contract, effective August 31, 2026. The additional Fee Schedule will be publicly posted on CCUS's website no later than that effective date.

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Key Dates

Published Date
Effective Date
7/24/2026
8/31/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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