Cboe to Launch KPI-Linked Binary Contracts With Robinhood as First Retail Broker

Zacks Investment Research··US·Read original
3▲2 ▼0Impact / 5
Summary · why it matters

Cboe Global Markets is expanding its derivatives portfolio with a new category of binary contracts tied to company-specific key performance indicators, expected to launch in October 2026 subject to regulatory approval, with Robinhood set to become the first retail broker to offer them. Cboe plans to initially list contracts linked to 23 U.S.-listed companies, giving investors a way to trade specific corporate metrics and events through SEC-regulated products, and will waive fees on the contracts through the end of 2026 while Robinhood plans to offer them without fees during that period. The exchange also plans to leverage its listing, trading and clearing capabilities, with Cboe Clear U.S. seeking SEC registration to clear the new contracts, which could create additional revenue opportunities as Cboe supports a wider range of traditional and non-traditional financial products. Peers have moved into event-based offerings as well: CME Group has expanded its event-contract offerings with short-duration, outcome-based products across equities, rates and commodities, while Nasdaq has entered the event-based options market with cash-settled, European-style binary options tied to the Nasdaq-100 and Nasdaq-100 Micro Index with a fixed $100 settlement amount and premiums ranging from $0.01 to $1.00. Cboe stock has gained 10% year-to-date against the industry's decrease of 12.5%, and trades at a forward price-to-earnings multiple of 19.04 versus the industry average of 19.63, while the Zacks Consensus Estimate points to a 15.9% year-over-year increase in 2026 revenues and a 29.2% year-over-year decline in earnings, followed by a 2.7% revenue increase and 5.7% earnings increase in 2027.

Impact on assets 4

Digital Finance & Tokenization▲ · 2 stocks
Robinhood Markets Inc
HOOD
▲ PositiveDemandrelevance

Robinhood is set to become the first retail broker to offer Cboe's new KPI-linked binary contracts.

Nasdaq Inc
NDAQ
± MixedCompetitionrelevance

Nasdaq is mentioned only as a peer that entered the event-based options market.

Financials▲ · 1 stocks
Cboe Global Markets Inc
CBOE
▲ PositiveTechnologyCapitalrelevance

Cboe is launching a new category of KPI-linked binary contracts, expanding its derivatives product portfolio.

Carbon Removal (DAC)▲ · 1 stocks
CME Group Inc
CME
± MixedCompetitionrelevance

CME is cited as a peer that has expanded event-contract offerings, mentioned only as context.

© 2026 MarketIVNews