Update - Cboe Options to List KPI Binary Options
Reference ID: C2026090101
Applicable Cboe Exchange: Cboe Options
Overview
Effective as early as Q3, 2026, Cboe Options Exchange (C1) will begin listing cash-settled KPI Binary Options, subject to regulatory review and approval of applicable filings of C1 and Cboe Clear U.S. LLC (CCUS).
KPI Binary Options are CCUS-cleared, cash-settled, European-style binary options that settle based on the value of a corporate KPI sourced from annual, quarterly, or current form 10-K, 10-Q, or 8-K reports furnished to or filed with the SEC. KPI Binary Options will initially be listed for some of the most liquid companies in the U.S. equity market.
Technical Details
KPI Binary Options may trade in penny increments at prices between 0.01 and 1.03 and have a contract multiplier of 1. The maximum allowable trade price is 1.03 to accommodate transaction costs for options with a fair value of 1.00.
The payout of an expired KPI Binary Option will be either 0.0 for options that expire out-of-the-money, or 1.0 for options that expire in-the-money. If the final exercise settlement value (i.e., KPI value at expiration) exactly matches a strike price, the call option at that strike price pays out 1.0 and the put pays out 0.0.
KPI Binary Options will be listed on Matching Unit 12. Matching Unit 12 is the Matching Unit associated with the letter "K" in the existing symbol distribution ranges outlined here in the Cboe Titanium U.S. Options Market Data specifications. The underlying symbol will match the OSI root of each listed option.
There will be no FIX or BOE order entry protocol changes required to support KPI Binary Options, nor any PITCH or TOP feed changes to receive Cboe market data for KPI Binary Options.
All transactions in KPI Binary Options will clear through CCUS.
Trading Hours
KPI Binary Options will be available to trade during Regular Trading Hours (RTH) from 9:30 a.m. - 4:00 p.m. ET.
Expiration date trading hours will depend on company-specific earnings reporting timing conventions.
- Companies that announce earnings before the open will be configured as AM-settled options that stop trading at the end of the RTH session on the trading date immediately prior to the expiration date.
- Companies that announce earnings after the close will be configured as PM-settled options that stop trading at 4:00 p.m. ET on the expiration date.
Settlement and Exercise
KPI Binary Options are European-style and can be exercised only on their expiration date. KPI Binary Options are subject to automatic exercise if the exercise criteria is met. The exercise of KPI Binary options will result in delivery of cash on the business day following expiration.
Symbology
KPI Binary Option OSI Roots will start with the letter "K". The second letter is used to differentiate KPIs, and the last three characters are derived from the associated company symbol. OSI Roots cannot be parsed to infer company and/or KPI. For example, Apple Inc. Earnings per share might be KAAPL where "K" is the prefix, "A" indicates first KPI, and APL is the underlying company symbol fragment.
Customers will use a KPI Binary Options supplemental symbol reference data file posted on the Exchange Reference Data webpage to access the universe of symbols that are KPI Binary Options and their KPI-specific reference data.
Additionally, KPI Binary Options underlying symbols will be identified in the Cboe Options Underlying (CSV) Reference Data file with Symbol Type = Discrete.
Product Listings (UPDATED)
The Day 1 Product Listings is now available on the Resource Hub (linked below).
Trading Privileges
Subject to the clearing-related requirements below, KPI Binary Options will be available for trading to all C1 Trading Permit Holders (TPHs).
Transactions in KPI Binary Options need to be cleared through a C1 TPH that is a Clearing Member of CCUS. Accordingly, to enter orders and quotes in KPI Binary Options on C1, a C1 TPH will need to have a C1 clearing guarantee in place with a C1 TPH that is a Clearing Member of CCUS.
C1 will make available to C1 TPHs separate Executing Firm IDs (EFIDs) for transacting in C1 products cleared through CCUS.
For additional information regarding C1 trading privileges, clearing guarantees, and EFIDs, please contact Cboe Membership Services.
Please contact CCUS Membership for information regarding the process to become a CCUS Clearing Member.
Testing Opportunity and Weekend Tests (UPDATED)
KPI Binary Options are currently available for testing in the C1 certification environment. There is no additional certification needed and C1 TPHs can use their existing FIX or BOE order entry sessions. TPHs are advised to contact the Cboe Trade Desk to enable a new CCUS EFID in the certification environment for testing.
| Milestone | Date |
|---|---|
| KPI Binaries Available in Certification | Available |
| Customer Weekend Test #1 | 08/15/26 |
| Customer Weekend Test #2 | 09/12/26 TBD |
| Customer Weekend Test #3 | Saturday prior to Production Launch |
| KPI Binaries Live in Production | TBD - As early as Q3 2026 |
Please note that queuing time is 7:30 a.m. ET and the Regular Trading Hours session is from 9:30 a.m. - 12:00 p.m. ET for all weekend testing opportunities.
Additional Information
Resources
Contact Information
Please contact the Cboe Trade Desk for support or with any questions.
We appreciate your business. Our trading community inspires and drives our purpose of building trusted markets.
Cboe Trade Desk: 913.815.7001 | [email protected]
Cboe Membership Services: 913.815.7002 | [email protected]