Cboe Exchange filed a new price-based transaction-fee formula for Mini-S&P 500 Index binary options. The Securities and Exchange Commission published the immediately effective filing on October 16.

The change replaces seven premium bands with a continuous calculation tied to the contract price. It applies to XSPBX binary options and took effect October 1.

Cboe binary options fees move to a formula

The formula multiplies a capacity-based constant by the contract price, one minus the price, the contract count and a 100 multiplier. Because price times one minus price peaks at $0.50, fees remain highest near the midpoint.

Customer orders use a 1.2% constant. Clearing firms, broker-dealers, professionals and market makers removing liquidity use 1.4%, creating a continuous fee curve instead of abrupt premium brackets.

How price points change under the filing

A customer contract priced at $0.50 still carries a $0.30 fee. At $0.25, the fee falls to $0.225 from $0.30, while a $0.10 contract costs $0.108 instead of $0.20.

The filing noted that some prices near the upper edge of an old bracket can cost slightly more. A customer contract at $0.24 would carry an approximately $0.219 fee, compared with $0.20 previously.

What remains unchanged for Cboe traders

Market makers adding electronic liquidity continue to pay $0.05 per contract, while manually executed market-maker orders remain at $0.15. Cboe also added IEX to a routing fee code that charges customers $0.25 per contract.

The filing changes fees, not the binary option’s two-outcome settlement structure. Investors assessing execution costs can also review Interactive Brokers’ trading results, the SEC’s recent staff guidance update and the ECB’s analysis of dealer constraints in repo markets.

Primary source: SEC Release No. 34-106680, October 16, 2026.

Sharron Kendi is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence.