Cboe Explores “All-or-None” Options as Event Trading Gains Momentum
Cboe Global Markets is exploring a regulated "all-or-none" options product, according to a source. This binary-style product would pay a fixed return if a specified condition is met and nothing if it is not, mirroring the mechanics of event contracts on prediction-market platforms. The move aims to capture growing retail demand for simpler, event-style trades that are easier to understand than traditional options, which involve complex concepts like implied volatility and time decay.
Cboe has previously introduced similar binary products, but they were delisted after failing to attract sustained interest. The exploration comes as regulators, including the CFTC, are drafting new rules for event contracts. Competition in event-style trading is increasing, with platforms like Kalshi and traditional firms like CME Group expanding into this space. Cboe is conducting legal and compliance reviews and has held discussions with retail brokerages and market makers. Key factors to watch include whether Cboe files a formal product proposal, broker adoption, and regulatory developments.
ccn.com02/03 10:03
