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. Prices would range from $0.01 to $0.99 and the contracts would trade on MEMX’s options platform with the benefit of central clearing, know-your-customer requirements, and MEMX’s existing regulatory and market-surveillance programs.
The MEMX proposal adds to the debate regarding how securities-based event contracts should be classified and, in turn, whether these are subject to the jurisdiction of the Commodity Futures Trading Commission (“CFTC”) or the SEC.