Mentioned:
Cboe wants to offer a new way to trade earnings. And they’re partnering up with Robinhood to do it.
What’s happening:
- Cboe Global Markets (CBOE: CBOE) and Robinhood (NASDAQ: HOOD) have partnered on launching regulated binary options on specific metrics from publicly traded companies including earnings per share and revenue
Why it matters:
- Robinhood will be the first retail brokerage to offer Cboe Global Markets’ planned binary options pending regulatory approval from the United States Securities and Exchange Commission
Going deeper:
- Robinhood will waive all trading fees for users on the new binary options as part of the initial launch with Cboe Global Markets
- Cboe Global Markets is seeking approval from the United States Securities and Exchange Commission to allow them to list binary options contracts focused on revenue and earnings per share as well as the ability to clear them through their owning clearing house Cboe Clear U.S.
The intrigue:
- Cboe Global Markets previously made waves on Wall Street when they launched a new prediction markets platform known as Cboe Predicts which initially rolled out event contracts focused on the Mini S&P 500 Index
