Mini-Russell 2000 Index binary options started trading at Cboe on 9 November under the symbol MRTBW. The reference index MRUT is one tenth the size of the Russell 2000. Contracts settle at $100 or $0 depending on the closing level. In Cboe's example, the high side of a 280 strike pays $100 at a close of 280 or higher and $0 below it.
Cboe lists afternoon-settled expiries for the same and next trading day, with central clearing through the Options Clearing Corporation. The exchange says the products can be accessed through selected retail brokers. Cboe reported average daily volume of 85,000 in its conventional Russell 2000 options during the first three quarters. That figure refers to the existing options suite.
Sources Cboe / PR Newswire · FX News Group
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