Statement on the Commission’s Approval of a Proposed Rule Change to Permit the Listing of Binary Options Overlying Key Performance Indicators
Source: Sec ·
Chairman Paul S. Atkins
From the source
Today, the Commission voted to approve a security exchange’s proposed rule change to allow the listing of binary options overlying specified key performance indicators (“KPIs”) reported by certain issuers of stock. I appreciate the Staff’s hard work in developing the approval order. As described in the approval order, the binary KPI options would be listed and traded on a securities exchange as cash-settled, European-style, standardized options that are NMS securities subject to the protections afforded by the securities laws. These options would be subject to the rules of a securities exchange and would be listed and traded in a substantially similar manner as existing, standardized, non-binary options that already trade on securities exchanges. These binary KPI options would be subject to securities exchange rules governing customer accounts; margin requirements; trading halt procedures; auction mechanisms; market-maker appointments and quoting obligations; order types;…