Cboe Bets on Return of Binary Options in the Context of Prediction Market Boom

Cboe Global Markets is in preliminary negotiations with retail brokerages and liquidity providers to relaunch binary options contracts. This move represents a strategic response by the American derivatives giant to the exponential growth of the market prediction segment, which has gained significant traction in recent months.

Why Are Binary Options Gaining Interest Again?

The prediction market is experiencing a period of rapid expansion. Platforms like Kalshi and Polymarket recorded a record monthly volume of $17 billion in 2025, signaling increasing investor appetite for prediction instruments. This dynamic has created an opportunity that has not gone unnoticed by traditional derivatives market players.

Cboe, which previously discontinued the product, now recognizes the commercial potential of this revival. The decision reflects both competitive pressure and the need to keep pace with evolving market trends. The timing is particularly relevant: the entry of significant volumes into these instruments demonstrates that retail investors are seeking more accessible and straightforward ways to participate in speculative markets.

Binary Options as an Entry Point for Retail Investors

Cboe’s strategy positions binary options contracts as a tool for education and gradual entry into the derivatives universe. Unlike traditional options contracts, these instruments offer a simplified structure, attracting investors with less experience in complex financial markets.

The initiative aims to democratize access to the derivatives market, building a bridge between retail participants and Cboe’s sophisticated infrastructure. This approach recognizes that binary options serve as catalysts for financial education and progressive engagement with more advanced instruments.

Regulatory Oversight and Sector Development

The plans are being developed under the supervision of the SEC (Securities and Exchange Commission) or CFTC (Commodity Futures Trading Commission), ensuring compliance with U.S. regulatory frameworks. This supervisory structure reflects Cboe’s institutional learning from previous experiences and its commitment to transparent operations.

The reintroduction of binary options into Cboe’s product portfolio marks a symbolic moment: the traditional derivatives industry reconnects with expanding market segments, reaffirming the ongoing relevance of these instruments in a rapidly evolving financial landscape.