The Chicago Board Options Exchange (CBOE) is planning to re-launch listed credit derivatives later this quarter, The Wall Street Journal reports. It initially introduced the instruments more than three years ago, but subsequently pulled them as they did not catch on as quickly as expected. The CBOE is looking to reintroduce credit event binary options, essentially options on securities that would pay out if an issuer defaulted within the life of the contract. The terms of the contracts will differ from CDSs, allowing CBOE to fix in advance the cash sum buyers will receive if the contracts were triggered for settlement, as well as what occurrences would constitute an eligible triggering event.

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