Effective as early as Q3, 2026, Cboe Options Exchange (C1) will begin listing cash-settled KPI Binary Options, subject to regulatory review and approval of applicable filings of C1 and Cboe Clear U.S. LLC (CCUS).

KPI Binary Options are CCUS-cleared, cash-settled, European-style binary options that settle based on the value of a corporate KPI sourced from annual, quarterly, or current form 10-K, 10-Q, or 8-K reports furnished to or filed with the SEC. KPI Binary Options will initially be listed for some of the most liquid companies in the U.S. equity market.

KPI Binary Options may trade in penny increments at prices between 0.01 and 1.03 and have a contract multiplier of 1. The maximum allowable trade price is 1.03 to accommodate transaction costs for options with a fair value of 1.00.

The payout of an expired KPI Binary Option will be either 0.0 for options that expire out-of-the-money, or 1.0 for options that expire in-the-money. If the final exercise settlement value (i.e., KPI value at expiration) exactly matches a strike price, the call option at that strike price pays out 1.0 and the put pays out 0.0.

KPI Binary Options will be listed on Matching Unit 12. Matching Unit 12 is the Matching Unit associated with the letter “K” in the existing symbol distribution ranges outlined here in the Cboe Titanium U.S. Options Market Data specifications. The underlying symbol will match the OSI root of each listed option.

There will be no FIX or BOE order entry protocol changes required to support KPI Binary Options, nor any PITCH or TOP feed changes to receive Cboe market data for KPI Binary Options.

All transactions in KPI Binary Options will clear through CCUS.

KPI Binary Options will be available to trade during Regular Trading Hours (RTH) from 9:30 a.m. – 4:00 p.m. ET.

Expiration date trading hours will depend on company-specific earnings reporting timing conventions.

Companies that announce earnings before the open will be configured as AM-settled options that stop trading at the end of the RTH session on the trading date immediately prior to the expiration date.

Companies that announce earnings after the close will be configured as PM-settled options that stop trading at 4:00 p.m. ET on the expiration date.

Subject to the clearing-related requirements below, KPI Binary Options will be available for trading to all C1 Trading Permit Holders (TPHs).

Transactions in KPI Binary Options need to be cleared through a C1 TPH that is a Clearing Member of CCUS. Accordingly, to enter orders and quotes in KPI Binary Options on C1, a C1 TPH will need to have a C1 clearing guarantee in place with a C1 TPH that is a Clearing Member of CCUS.

C1 will make available to C1 TPHs separate Executing Firm IDs (EFIDs) for transacting in C1 products cleared through CCUS.

KPI Binary Options are currently available for testing in the C1 certification environment. There is no additional certification needed and C1 TPHs can use their existing FIX or BOE order entry sessions. TPHs are advised to contact the Cboe Trade Desk to enable a new CCUS EFID in the certification environment for testing.