Binance launches U.S. stock, ETF options

Binance launched stock options on Sept. 1, giving eligible users access to physically settled contracts linked to selected U.S.-listed stocks and exchange-traded funds. Summary Binance launched physically-settled options on selected U.S.-listed stocks and exchange-traded funds for eligible users globally. Buyers can purchase calls or puts but cannot write contracts or open short options positions. Exercised contracts settle through underlying shares held by Alpaca Securities for Binance users in custody. Phase one supports limit orders only, with maximum buyer losses capped at premiums paid upfront. Most contracts trade during regular U.S. market hours from 9:30 a.m. until 4:00 p.m. Eastern. The product allows users to buy calls, which provide the right to purchase shares at a specified strike price, and puts, which provide the right to sell shares. Each contract has a fixed expiration date, according to the announcement. The exchange is offering the service through Nest Trading Limited as the introducing broker. U.S.-regulated Alpaca Securities acts as the clearing broker and holds shares delivered through exercised contracts on behalf of Binance users. Binance stock options use p...