Bet Yes or No: NYSE Unveils KPI Performance Gamble Options
Published Date: 9/18/2026
Notice
Summary
NYSE American wants to let people trade new binary options based on company performance numbers called KPIs. This change affects investors who like quick, yes-or-no bets on how companies do, and it could shake up trading starting soon after approval. It’s a fresh way to bet on business success with clear rules and no guesswork!
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
New Binary KPI Options Hit The Market
The Exchange proposes to allow new binary KPI options — European-style, cash-settled contracts that pay a fixed cash amount only if a company-reported KPI meets the option's strike at expiration (an all-or-nothing payout). These contracts would be cleared through a registered clearing agency and are designed to let investors bet yes-or-no on KPIs disclosed in SEC filings.
Settlement Uses SEC Filings; Restatements Don’t Reopen Payouts
A binary KPI option's settlement value is the KPI value disclosed in the issuer's earnings-related SEC filing (Form 8-K, 10-Q, or 10-K) on the applicable expiration date, and settlement is determined from that filing. If the issuer later restates the KPI after expiration, the option's settlement and any payout do not change; if the KPI is not reported on expiration, settlement will follow the Clearing Corporation's rules.
When Trading Stops and When Options Expire
Binary KPI options would trade during regular market hours from 9:30 a.m. to 4:00 p.m. Eastern Time. The Exchange would label options as A.M.-settled if an issuer discloses results before the market open and P.M.-settled if after market close; P.M.-settled options' last trading day is the expiration day, while A.M.-settled options' last trading day is the business day before expiration. If an issuer discloses the KPI early (or there is an unofficial disclosure), trading may halt and expiration may accelerate in accordance with Clearing Corporation or OCC rules.
Strikes, Scaling, and Contract Structure Rules
The Exchange proposes specific contract rules: expirations up to 12 months and up to two expirations per KPI per issuer; contract multiplier = 1; strikes are scaled based on KPI size (dividing by 1,000; 1,000,000; 1,000,000,000; or 1,000,000,000,000 depending on KPI magnitude) and may reflect negative KPI values as absolute strike numbers. Minimum strike intervals would be 0.01 (<10), 0.10 (>=10 and <100), 1.00 (>=100 and <1,000), 10.00 (>=1,000 and <10,000), and 100.00 (>=10,000).
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