Cboe Explores Relaunch of All-or-Nothing Binary Options

Cboe Global Markets is in early talks with retail brokerages and market makers about the relaunch of binary options contracts for individual investors. According to a recent report from the Wall Street Journal, this move signals Cboe’s interest in the growing prediction markets sector.

Cboe to Compete With Prediction Markets

Binary options are financial derivatives that offer a fixed payout if a specific condition is met by the expiration date. If these conditions are not met, the options expire worthless. They are often referred to as a “yes-or-no” contract. They function similarly to betting structures on prediction market platforms, where individuals place wagers on real-world outcomes.

It is worth noting that Cboe’s new binary options are structured as regulated derivatives. This sets them apart from many existing prediction platforms that operate in areas with unclear regulations. 

Notably, interest in binary options is rising as more people participate in prediction markets. These platforms attract traders because they are simple, have clear risks, and provide straightforward outcomes. As such, Cboe’s all-or-nothing contracts could offer similar advantages by using the exchange’s strong support and oversight.

Prediction Market Volumes Break Records

Recently, the trading volume of prediction markets reached $814.2 million. This broke the prior record of $710.7 million set just one week earlier. Kalshi remained the top platform by volume, with active markets across politics, finance, sports, and entertainment. Polymarket and Opinion also posted strong numbers, adding to the sharp rise in activity. 

No doubt, this growth lines up with wider exposure. Prediction markets have featured in major news coverage and entertainment events, while sports betting ads and sponsorships now dominate broadcast media. 

CFTC Plans New Rules for Prediction Markets

Recall that the U.S. Commodities Futures Trading Commission (CFTC) is getting ready to change how prediction markets are regulated. Under its newly appointed Chair, Michael Selig, the agency is working to create clearer and more consistent rules. 

Recent reports show that the CFTC has backed away from earlier plans to limit prediction markets. The commission has dropped a 2024 proposal that aimed to ban political and sports–related prediction markets.

It has also cancelled a 2025 advisory that warned platforms against offering sports-based contracts. Meanwhile, the announcement was made during a joint event with the Securities and Exchange Commission (SEC) Chairman Paul S. Atkins. It showed closer cooperation between the two regulators.