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CME looks to lure retail traders with daily options frowned on in Europe

Chicago exchange group launches contracts that track up or down moves in indices and commodities

CME Group plans to launch binary options in a push to woo more retail traders, offering a type of contract that regulators in much of Europe have banned as a form of gambling.

The Chicago-based derivatives exchange operator on Tuesday said that its so-called event contracts would be offered in September, allowing “individuals to trade their views on daily up or down price moves” in CME futures markets such as the S&P 500 stock index, gold or crude oil.

Attracting retail traders is a “critical component” of the growth strategy at CME, company executives have said. The website for the new contracts depicts a simple yes-or-no question on which customers can place trades by swiping a phone screen.

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