Event Contracts at the SEC-CFTC Crossroads: Exchange Proposals to List and Trade Contracts Structured as Binary Options

On August 24, 2026, the Securities and Exchange Commission (“SEC”) published notice of the filing of a proposal by MEMX LLC to list and trade securities event contracts (File No. SR-MEMX-2026-25). The securities event contracts would be cash-settled, European-style binary “YES” or “NO” options based on the outcome of an event related to the financial performance of an issuer the stock of which trades on a national securities exchange.... By: Mayer Brown Free Writings + Perspectives