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SEC Approves KPI-Linked Options Contracts for Listing on Cboe

MixedMedium impact
HOOD$102.25 1.16%

The Securities and Exchange Commission approved a proposal from Cboe Global Markets, Inc. (CBOE) to list binary options tied to company-specific key performance indicators. The decision clears the way for Robinhood Markets, Inc. (HOOD) to become the first retail brokerage to offer these event-driven contracts to individual investors. The new products will track more than 100 corporate metrics across 23 companies, including data-center revenue for NVIDIA Corporation and iPhone sales for Apple Inc.

The move allows retail traders to take positions on specific corporate operating metrics rather than standard stock price movements. For Robinhood Markets, Inc. (HOOD), the contracts represent an opportunity to expand its suite of event-based financial products and build on transaction-based revenue growth. The offering adds to existing trading momentum across options, equities, and prediction market products.

Investors should note that trading in the new contracts has not yet begun because clearing approvals remain pending. Furthermore, Robinhood Markets, Inc. (HOOD) and Cboe Global Markets, Inc. (CBOE) plan to waive fees through the end of 2026, meaning immediate financial gains will be limited until fee monetization begins and regular trading volume builds.

Key points

  • The SEC approved Cboe Global Markets, Inc.'s proposal on Oct. 13 to list binary options tied to specific company performance metrics.
  • Robinhood Markets, Inc. expects to be the first retail broker offering these contracts, covering over 100 metrics across 23 firms.
  • Trading cannot begin until pending clearing approvals are completed, and fee waivers will remain in place through the end of 2026.
  • The contracts will let investors trade on specific business results, such as NVIDIA data-center sales and Apple iPhone revenue.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

What are KPI-linked options contracts?

KPI-linked contracts are binary options tied to specific corporate performance indicators, such as data-center revenue or customer counts, rather than traditional stock prices.

When will Robinhood start offering KPI options?

Trading has not yet started because necessary clearing approvals are still pending. Robinhood and Cboe also plan to waive fees through the end of 2026.

Which metrics will be covered by the new contracts?

The initial contracts are expected to cover over 100 metrics across 23 companies, including NVIDIA data-center revenue and Apple iPhone revenue.