US Binary Options: ICE enters market with ByRDs at NYSE Amex Options

Rick Steves

Having announced the new product back in 2014, the Intercontinental Exchange Group (ICE) is finally launching Binary Return Derivatives (ByRDs) into market on April 21, listed on the New York Stock Exchange, and competing against Nadex Exchange, the first legal U.S. exchange focused on binary options, and the Chicago Board of Options Exchange (CBOE). Unlike […]

ICE enters market with ByRDs at NYSE Amex Options

Having announced the new product back in 2014, the Intercontinental Exchange Group (ICE) is finally launching Binary Return Derivatives (ByRDs) into market on April 21, listed on the New York Stock Exchange, and competing against Nadex Exchange, the first legal U.S. exchange focused on binary options, and the Chicago Board of Options Exchange (CBOE).

Unlike over-the-counter (OTC) binary options, under immense strain as multiplying fraud scandals all over the world affect the credibility of its operators, the US has that form of trading tightly regulated, on-exchange, with transparency at all times. Traders can enter and exit as they please, thus being able to make trades based on varying risk-to-reward scenarios as long as there is a willing buyer or seller counterpart. The binary options exchanges make money from an exchange fee and not from a trade loser, as usually seen in OTC brokers.

The NYSE, part of the ICE, will have its Amex Options platform offering ByRDs starting on April 21, cash-settled and exercisable only at expiration options with limited profit potential and defined risk for both counterparts, based on an underlying equity security. The platform will be the first to offer ByRDs on equities and exchange traded products (ETPs) to retail investors.

Offering a fixed return of $100.00 per contract, risk oscillates according to the supply and demand mechanism, but never exceeding $100.00 per contract, less the premium received for selling the option.

NYSE Head of Options Ivan Brown said: “The introduction of Binary Return Derivatives, or ByRDs, on NYSE Amex Options gives investors access to a new, simple income-generation tool with the same level of flexibility as standard listed options, plus a straightforward, fixed return. We’re excited to offer investors these innovative and solutions-driven investing tools.”

To read NYSE ByRDs full documentation, click here.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<