Cboe Exchange's Proposed Rule Change on Binary Options
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Cboe Exchange is changing its rules on binary options, expanding them from broad-based indexes to all eligible indexes, and allowing both A.M. and P.M. settlements. Binary options offer an all-or-nothing payout depending on if the option is in-the-money at expiration. These changes will give traders more flexibility and provide more investment opportunities in a regulated and transparent environment.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Expanded binary options to include all eligible indexes.
- Introduced A.M. and P.M. settlements for binary options.
- Revised position limits for better market control.
Obligations
What this law requires
Cboe Exchange, Inc. must expand the availability of binary options to include all eligible indexes, rather than limiting them to broad-based indexes only.
Cboe Exchange, Inc. must expand the availability of binary options to all eligible indexes, rather than limiting them to broad-based indexes, as outlined in proposed Rule 4.71(a).
Cboe Exchange, Inc. must implement both A.M. and P.M. settlement options for binary options, as specified in proposed Rule 4.72(a).
Cboe Exchange, Inc. must designate binary options as A.M. or P.M. settled based on the corresponding traditional options for the indexes they are based on.
Cboe Exchange, Inc. must set minimum price variations for binary options quoting at no less than $0.01, in accordance with the established standards.