The exchange plans contracts for 23 US-listed companies in partnership with Robinhood, Bloomberg reported.
Cboe Global Markets won SEC approval to list options tied to publicly traded companies’ key performance indicators, Bloomberg reported on October 14. The decision makes Cboe the first securities exchange approved to offer the contracts.
The options will let traders take positions on whether companies exceed or miss specified operating metrics, such as quarterly vehicle deliveries or iPhone sales. Cboe previously announced plans for contracts covering 23 US-listed companies, with a debut scheduled this month in partnership with Robinhood.
The SEC approved the proposal late Tuesday.
The decision adds a securities-exchange offering to a market where Kalshi already lists similar contracts. Prediction products have prompted questions about the boundary between SEC oversight and the Commodity Futures Trading Commission’s authority.
SEC Chairman Paul Atkins said the approval neither resolves nor rules out CFTC jurisdiction over contracts based on the same underlying indicators. He pointed to structural differences in the proposed Cboe options.
American Securities Association CEO Chris Iacovella welcomed the decision, saying regulated securities-exchange listing would give investors another way to manage company-specific risk under securities laws.
