Cboe Seeks US Approval for Earnings-Linked Options

Cboe Global Markets Inc. is seeking US regulatory approval to list all-or-nothing options tied to corporate earnings results, according to a report from Bloomberg. These products would allow traders to speculate on specific metrics such as SpaceX revenue, Nvidia data-center sales, or JPMorgan Chase & Co.'s credit-loss provisions.

Proposed Product Details

The proposed Cboe options are "all-or-nothing" instruments, meaning investors either receive a fixed payout or nothing based on whether a certain metric is met. This resembles prediction contracts popularized by platforms like Kalshi and Polymarket, but would be listed on a regulated exchange.

Regulatory Context

The move comes as the US Securities and Exchange Commission (SEC) seeks to regulate prediction markets. Last year, the SEC approved election prediction contracts for Kalshi after a legal battle. Cboe's proposed products would be listed options, giving them a different regulatory status than unlisted prediction contracts.

What This Means for Investors

If approved, these options would provide a new way for investors to hedge or speculate on corporate earnings outcomes with greater precision. They could increase market liquidity and provide more accurate pricing tools for earnings expectations.