The approval from the SEC allows Cboe to list binary options based on Coinbase trading volume and MARA’s Bitcoin production. The rules state that once the contracts have expired and settled, any later corrections to the reported figures will not affect the payout.
The order was dated Oct. 13 and published in the Federal Register on Oct. 16. As of Oct. 17, trading availability for the specific series related to Coinbase and MARA, as well as eligibility for Robinhood customers, remained uncertain.
The eligible metrics for Coinbase include transaction revenue, subscription and services revenue, and total trading volume. For MARA, permitted metrics include Bitcoin produced and total Bitcoin holdings.
When listing the options, Cboe sets the metric and reporting period, giving each contract a specific figure to resolve against. A call pays out if the reported figure equals or exceeds the contract’s threshold, while a put pays out if it falls below. The standard gross payout is $1, subject to adjustments and alternative settlement rules. The buyer’s profit or loss also depends on the purchase price and any applicable trading costs.
The restatement provision applies after both expiration and settlement. A later correction does not change the settlement value or the payout amount. Therefore, an option that settled without a payout will not receive one if the company later revises its number across the threshold. The same applies to an amount already paid.
In cases where a metric is unavailable, alternative clearing procedures may be triggered. These procedures could use the option’s last closing price as the settlement amount, resulting in a different outcome from the usual all-or-nothing payout. If the closing price is deemed unreliable, the option may expire unexercised and worthless.
Cboe’s announcement on Sept. 30 planned a rollout of KPI contracts across 23 companies in October, pending regulatory approval, with Robinhood as the first retail broker at launch. The approval record also indicates that Cboe will wait for approval from Cboe Clear U.S. before listing the options.
Overall, the approval of these rules by the SEC paves the way for Cboe to offer binary options based on Coinbase and MARA metrics, with clear guidelines for settlement and payout.
