2026-19139NoticeWallet

Arca Joins KPI Binary Bets: Wager on Company Goals Now

Published Date: 9/18/2026

Notice

Summary

NYSE Arca wants to let people trade new binary options based on key performance indicators (KPIs) from certain companies. This means investors can bet on whether a company hits specific goals, adding a fresh way to trade. The change is under review now, and if approved, it could shake up trading with new opportunities and risks.

Analyzed Economic Effects

6 provisions identified: 0 benefits, 2 costs, 4 mixed.

New Binary KPI Options Allowed

NYSE Arca proposes to allow listing and trading of new "binary KPI options" that pay a fixed cash amount if a company-specific key performance indicator (KPI) reported in an issuer's Form 8-K, 10-Q, or 10-K meets or crosses a strike. The filing (SR-NYSEARCA-2026-93) names many issuers and KPIs (for example, Apple: diluted EPS and total net sales; Microsoft: diluted EPS and revenue; Amazon: diluted EPS and total net sales), so investors could trade contracts tied to those specific reported metrics.

All-or-Nothing Cash Settlement From SEC Filings

Binary KPI options would be European-style and cash-settled, with the payout determined by whether the KPI value in the issuer's earnings-related SEC filing meets the strike. The settlement value is taken from the issuer's filing on the applicable expiration date and, if the KPI is later restated after settlement, the settled payout does not change.

Expiration Tied to Issuer Earnings Dates

Binary KPI option expirations will be the date an issuer discloses the applicable KPI in its earnings results; the Exchange may list series that expire up to 12 months from listing and may list up to two expirations at a time per KPI per issuer. If the exact disclosure date is unknown when listed, a placeholder expiration will be used (e.g., three months after the prior quarterly release).

Trading Hours and Early-Disclosure Halts

The Exchange proposes trading hours for binary KPI options of 9:30 a.m. to 4:00 p.m. ET. If an issuer discloses the KPI before the listed expiration date, trading in that series will cease and the option expiration may accelerate in accordance with Clearing Corporation rules; the Exchange may also halt trading if unofficial KPI disclosures appear.

Strike Scaling and Quotation Rules

The Exchange would scale KPI exercise prices by tiers (divide by 1,000; 1,000,000; 1,000,000,000; or 1,000,000,000,000 depending on KPI size) and truncate rather than round. Minimum strike intervals vary by strike level (for example, 0.01 when strike < 10; 0.10 for strike ≥10 and <100; 1.00 for strike ≥100 and <1,000; 10.00 for strike ≥1,000 and <10,000; 100.00 for strike ≥10,000). Negative KPI values may be listed using absolute-value strikes.

Clearing and Adjustment Rules by Clearing Agency

Binary KPI options would be cleared through a registered clearing agency (e.g., OCC or another Clearing Corporation), and any contract adjustments or delayed settlement processing would occur only under that clearing agency's rules and announced via Exchange Trader Updates.

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Key Dates

Published Date
9/18/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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