The Securities and Exchange Commission has approved rule changes proposed by the Chicago Board Options Exchange and The Options Clearing Corporation (OCC) relating to the listing and trading of credit default options (CDOs) on CBOE and the clearance and settlement of CDOs by OCC. CDOs are cash-settled, binary options that are automatically exercised upon the occurrence of a credit event (typically a failure to pay or other event of default) with respect to one or more specified debt securities of a public company. In the CBOE approval, the SEC determined that CDOs are “securities” as defined in the Securities Act and designated CDOs as standardized options for purposes of Exchange Act Rule 9b-1.