Cboe considers relaunching binary options similar to prediction markets

Cboe Global Markets is considering relaunching a binary options product for retail investors, The Wall Street Journal reported. The product operates similarly to prediction markets, allowing traders to bet on "yes/no" outcomes where they either receive a fixed payout or the contract expires worthless. This all-or-nothing structure involves contracts typically priced between $0.01 and $0.99. The move is seen as an effort to tap into the rapidly growing prediction market sector. Cboe first listed binary options tied to major financial indices in 2008 but later discontinued them due to low popularity. JJ Kinahan, Head of Retail Expansion at Cboe, said the company will follow a very strict process for legal and compliance requirements before any potential launch, adding that the contracts would be regulated by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).