Cboe eyes binary options relaunch to rival prediction markets

Cboe Global Markets is considering relaunching binary options for retail investors, aiming to rival prediction markets like Kalshi and Polymarket with regulated, fixed-payout event contracts.

Cboe Global Markets is in early talks to reintroduce binary options—also known as all-or-nothing or fixed-return contracts—targeting retail investors. This move aims to compete with fast-growing prediction market platforms such as Kalshi and Polymarket. Binary options let traders bet on yes-or-no outcomes for specific events, offering a fixed payout if the condition is met and nothing if it is not. Renewed interest in these contracts follows record trading volumes in prediction markets, with $17 billion reported in January. Cboe previously launched similar products in 2008 but withdrew them due to low demand and regulatory scrutiny. The current initiative emphasizes a regulated framework, overseen by the SEC or CFTC, to address concerns over fraud and risk. Cboe is in discussions with brokerages and market makers, but no launch date has been set.