A 21 October Federal Register notice details Cboe’s replacement of premium bands with a continuous fee formula for Index Binaries, currently XSPBX. The schedule took effect on 1 October; a replacement filing followed on 8 October and the SEC notice on 16 October.[1]
For customer orders, the dollar fee is 0.012 × p × (1−p) × contracts × 100, where p is the quoted price.[1]
Customer fee per contract
| Quoted price | Previous fee | Formula result |
|---|---|---|
| 0.24 | $0.20 | $0.21888 |
| 0.25 | $0.30 | $0.225 |
| 0.50 | $0.30 | $0.30 |
These are exchange fees. Cboe’s contract specification uses a $100 multiplier, so a 0.25 quote means a $25 option premium. At expiry, a call pays $100 when the index settlement value reaches or exceeds the strike; otherwise it pays zero. Buyers must fund the premium in full. The contract’s payout and its transaction charge are separate amounts.[2]
For brokers, the practical implication is to calculate the expected charge with the order preview, then reconcile it against the fill. A cost estimate needs to account for execution at a different price. Their own commission remains another part of the customer’s bill.
Sources & further reading
- SR-CBOE-2026-080 fee notice SEC / Federal Register · 21 Oct 2026 · Accessed 21 Oct 2026
- Mini-S&P 500 binary-option specifications Cboe · Accessed 21 Oct 2026