Cboe Global Markets launches Russell 2000 binary options

Cboe Global Markets has introduced mini-Russell 2000 Index (MRUT) binary options, which began trading on November 9. The new contracts, trading under the ticker MRTBW, track an index representing one-tenth of the full Russell 2000 Index value.

These SEC-regulated prediction market products allow traders to make directional, yes-or-no bets on whether the MRUT index will settle at, above, or below a specific level. Each contract results in a fixed payout of either $100 or $0. Cboe is offering contracts with same-day and next-day expirations, which will be centrally cleared through the Options Clearing Corporation.

According to JJ Kinahan, Head of Retail Expansion and Alternative Investment Products at Cboe, the launch aims to provide investors with short-term exposure to small-cap stocks. The company's stock rose 0.93% to $356.54 following the announcement.