Cboe Global Markets, one of the largest U.S. derivatives exchanges, is reintroducing binary options on the S&P 500 index after abandoning them more than a decade ago. Binary options are yes-or-no bets that pay a fixed amount if the index crosses a specific level. The move comes as prediction markets like Polymarket and Kalshi have surged in popularity, attracting mainstream interest from Meta and Nasdaq as well. Cboe is adding a new feature called 'plus,' built on a vertical spread, allowing traders to receive partial payouts as the index moves instead of the traditional all-or-nothing outcome. The contracts will be available through Interactive Brokers and later Charles Schwab. Cboe first listed binary options in 2008, but they failed to gain traction and were withdrawn by 2017. The renewed attempt capitalizes on the growing demand for fast, outcome-based trades, evidenced by Cboe's success with same-day S&P 500 options, which now account for 30% of U.S. options volume. Unlike Polymarket's onchain, USDC-settled platform, Cboe's product is a regulated instrument sold through U.S. brokerages.

Key facts

• Cboe reintroduces S&P 500 binary options after shelving them in 2017.
• New 'plus' feature uses a vertical spread for partial payouts.
• Contracts available via Interactive Brokers, Charles Schwab later in 2025.
• Move follows success of same-day S&P 500 options, now 30% of US options volume.
• Cboe product is regulated, unlike Polymarket's onchain, USDC-settled platform.

KeyAudit data perspective