Cboe plans to bring back binary options to compete with prediction markets

Cboe Global Markets is considering bringing back binary options, also called "all-or-nothing" options, for retail investors. This move is intended to place the exchange in direct competition with prominent prediction market platforms like Kalshi and Polymarket, which have gained traction, especially following the 2024 US election. Cboe is reportedly in early discussions with retail brokerages and market makers to develop and execute these revised contract offerings. Binary options, like event contracts offered by prediction markets, feature a fixed payoff contingent entirely on whether a specific condition is met at expiration, making the outcome binary: either a fixed win or total loss of investment. While legally permissible, these contracts face regulatory scrutiny, with some state regulators arguing they resemble unlicensed gambling rather than federally protected derivatives.

(Source：Crypto Briefing)