Cboe Global Markets collaborates with market makers to revive binary options

TestnetFreeloader · 2026-02-15T09:12:43+00:00

As the prediction market experiences unprecedented growth, Cboe Global Markets considers reintroducing binary options to engage retail investors and market makers, ensuring a user-friendly trading environment amid regulatory oversight.

TestnetFreeloader

2026-02-15 09:12:43

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As the prediction market experiences record-breaking growth, established major exchanges are also looking to ride this wave. According to Odaily, Cboe Global Markets is in early discussions with retail traders and market makers, and is considering reviving the binary options contracts it once offered.

Prediction Markets Achieve Record Growth — Accelerating Competition

In January, prediction platforms like Kalshi and Polymarket reached a monthly trading volume of $17 billion, a record high. In response to this rapidly expanding market, traditional derivatives exchanges are actively exploring new business opportunities. Cboe Global Markets is also considering reintroducing products based on its past experience to keep up with this trend.

A New Role Connecting Market Makers and Retail Investors

Cboe’s focus on binary options is driven by a strategy to expand access for retail investors. The company aims to position this product as a gateway for retail traders to enter the options market. Collaborating with market makers to ensure liquidity and create an accessible trading environment for beginners is a key priority.

Interestingly, Cboe Global Markets was a pioneer in launching binary options contracts in 2008. Although it withdrew from the market due to changing conditions, the current boom in prediction markets has prompted the company to decide to return to this product category.

Operating Within Regulatory Frameworks — Under SEC and CFTC Oversight

The plan to revive binary options will proceed under the supervision of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). Overcoming regulatory challenges related to the role of market makers and the protection of retail investors will be crucial to realizing this plan.

As the prediction market rapidly expands, Cboe Global Markets’ move to partner with market makers and develop new binary options offerings exemplifies the industry’s maturing landscape.

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