Cboe Extends S&P 500 Options License to 2051, Stock Jumps 5%

CBOE and S&P Dow Jones Indices signed a 25-year extension of Cboe's exclusive licensing agreement for S&P 500 index (SPX) options, keeping the franchise with Cboe through 2051. The relationship dates to the 1983 launch of SPX options, and SPX has become one of Cboe's most valuable products: 2025 volume reached a record 970.6 million contracts, an average of 3.9 million a day and up 25% from the prior year, the fourth straight record year.

Cboe moved quickly to address the obvious question, cost. In a second release it said there will be no change to 2026 royalty fee terms, that updated terms begin in 2027, and that it estimates the 2027 terms will have a "de minimis" impact on 2027 net revenue growth once organic volume growth and pricing are considered. Future royalty adjustments are expected to be smaller than the 2027 reset. Cboe did not disclose dollar figures and said it will give more specific 2027 guidance with fourth-quarter earnings in February. The companies also said they may collaborate on products beyond traditional index derivatives, including tokenized options contracts, though no product or timeline was announced.

Investors welcomed the certainty. Cboe shares rose about 5% after the announcement, and our data showed the stock at $263.20, up 3.9%, by midday. Removing the risk of losing SPX exclusivity for a quarter century matters because SPX options, along with the VIX franchise Cboe owns outright, anchor its derivatives business. One countercurrent in our data: short sale volume in CBOE climbed to 24% of trading, above its 20-day average of 15%.

What to watch: the size of the 2027 royalty reset once Cboe issues guidance in February, whether SPX volume keeps growing at the pace that makes a higher royalty immaterial, and whether the tokenized options idea turns into a concrete product filing.