FINRA Amends Rules and Updates Interpretations to Regulate Binary Options, Effective October 22, 2026

FINRA has issued Regulatory Notice 26-21, amending rules and updating interpretations to clarify regulatory applicability for binary options, with the amendments taking effect on October 22, 2026. The revisions cover Rules 2220 (Options Communications), 2360 (Options), and 4210 (Margin Requirements), clarifying that the rules apply to options whose payout is based on financial or operational metrics disclosed by the issuer, as well as options cleared by registered clearing agencies other than OCC.