Market News
Cboe Seeks to List Prediction Market Type Options on Earnings Metrics
(Bloomberg) -- Cboe Global Markets Inc. is seeking US regulatory approval to list all-or-nothing options tied to corporate earnings results, allowing traders to wager on figures ranging from SpaceX revenue and Nvidia data-center sales to JPMorgan Chase & Co.'s credit-loss provisions.
The proposed "binary KPI options" would settle based on whether a company's reported financial or operating metric met a preset threshold, rather than on the movement of its stock price, according to a filing with the Securities and Exchange Commission. The contracts, which would be similar to binary yes-or-no bets already available on prediction market exchanges, would track 23 companies and more than 100 possible metrics.
The proposal comes as exchange operators like Cboe are racing to list products that give traders new ways to hedge risk, while also competing with the likes of Kalshi and Polymarket for retail interest in event-style contracts. Other company metrics listed in the filing include Apple Inc. iPhone sales, Coinbase Global Inc. trading volume and Tesla Inc. model 3 and model Y production.
Unlike Kalshi and Polymarket, which are regulated by the Commodity Futures Trading Commission, Cboe is a securities exchange operator and therefore overseen by the SEC, which has stricter rules about listing new products.
Traditional exchange operators have nonetheless sought to roll out a raft of new contracts in recent months, seeking to capture growing demand for event-driven trading while keeping that activity on time-tested venues.
Cboe said last week it brought back a type of contract that allows customers to place yes or no bets on the S&P 500 reaching a certain threshold, after a hiatus of more than a decade. Nasdaq Inc. has regulatory approval to launch binary index options contracts, which are expected to list later this year, while Intercontinental Exchange Inc., owner of the New York Stock Exchange, is adding new futures contracts tied to global monetary-policy decisions and US natural gas storage, Bloomberg reported earlier this week.
