The SEC has approved Cboe Global Markets to list options contracts tied to key performance indicators (KPIs) of publicly-traded companies, marking a first in the US securities market. These contracts, developed in partnership with Robinhood Markets Inc., will allow traders to wager on specific metrics such as Tesla's vehicle deliveries or Apple's iPhone sales. Cboe had planned to launch contracts for 23 US-listed companies.
The approval positions traditional exchanges to compete with platforms like Kalshi Inc. While the SEC asserts jurisdiction, Chairman Paul Atkins clarified that the decision does not foreclose potential CFTC oversight due to structural differences. Chris Iacovella of the American Securities Association stated the move provides investors a regulated way to manage company-specific risk under securities laws.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing