The U.S. Securities and Exchange Commission (SEC) has given Cboe Clear U.S., LLC an 18-month registration to clear cash-settled binary options, opening a temporary route for contracts linked to corporate performance indicators.
Issued Oct. 22, 2026, the order allows Cboe Clear U.S. to operate as a securities clearing agency for 18 months from that date. It also grants exemptions from requirements in Sections 17A(b)(3)(B) and (F) of the Securities Exchange Act. The order does not grant permanent registration.
The proposed options would settle in cash based on whether key performance indicators (KPIs) reported by certain issuers of equity securities meet or exceed a prespecified strike level. Cboe Clear U.S. said in its application that the contracts would be fully margined.
Cboe Global Markets said Oct. 23 that it plans to list its initial contracts on Cboe Options Exchange in the fourth quarter of 2026, with Robinhood availability targeted for the same period. The announcement describes a plan, not a confirmed launch.
The SEC reported receiving one comment letter. Its author supported temporary registration but cautioned that a permanent clearing agency affiliated with an exchange could further fragment listed-options clearing. The commenter said fragmentation could increase fees and capital costs for clearing members and their clients, while reducing portfolio-margining benefits.
The SEC said the interim authorization would let the Commission and market participants assess potential costs and effects on options-market structure. Under the SEC’s description of Rule 17Ab2-1(c), the Commission has no more than nine months from the temporary registration’s effective date to grant registration or institute proceedings. The order starts the 18-month term on Oct. 22 but does not state a separate effective date for the nine-month deadline.
