Charles Schwab and Cboe Launch S&P 500 Binary Options Prediction Markets
Charles Schwab partnered with Cboe Global Markets to offer binary options contracts on the S&P 500 index, entering the prediction market space. The all-or-nothing contracts allow customers to bet on whether the index closes above or below a target price, with a “Plus Zone” feature for partial payouts. The move, driven by competitive pressure from Robinhood and Interactive Brokers, limits offerings to financial outcomes. Cboe’s prediction markets debut follows surging demand, with combined monthly volume on platforms like Kalshi and Polymarket reaching ~$24 billion.
Cross-source coverage
Wire timeline
Charles Schwab Expands into Prediction Markets with Cboe Binary Options
Charles Schwab is entering the prediction markets space by partnering with Cboe Global Markets to offer binary options contracts, according to a Wall Street Journal report. The brokerage plans to introduce all-or-nothing options that allow customers to bet on whether the S&P 500 will close above or below a specified target price. Unlike platforms like Kalshi and Polymarket that use futures, Schwab will use options contracts that pay a fixed cash settlement or nothing. The contracts will also feature a 'plus zone' from Cboe, enabling partial payouts if the index closes near the target. Schwab intends to launch the product in the coming months and has discussed expanding to other financial benchmarks, but will avoid non-financial event contracts related to sports or entertainment. Schwab and Cboe view this as a regulated way to offer prediction markets to retail investors.
Yahoo FinanceCboe Launches S&P 500 Prediction Market
Cboe Global Markets, a major American financial exchange operator, has launched a new prediction market platform called 'Cboe Predicts' tied to the daily performance of the S&P 500 Index. Traders can take yes-or-no positions on where the index will finish trading on a given day. The new products trade under tickers XSPBW and XSPBX and are available through Interactive Brokers. The move comes as financial and crypto trading platforms, including Robinhood and Coinbase, rush to offer prediction market betting. The sector is currently dominated by privately held Polymarket and Kalshi. Separately, reports indicate Meta Platforms is planning to launch its own prediction market called 'Arena.' Cboe's stock has risen 12% over the past year.
Yahoo FinanceCboe Launches S&P 500 Prediction Market
Cboe Global Markets, the largest U.S. options exchange operator, has launched 'Cboe Predicts,' a new prediction market platform linked to the daily performance of the S&P 500 Index. Traders can take yes-or-no positions on where the index will close each day. The new products trade under tickers XSPBW and XSPBX and are available via Interactive Brokers. This move places Cboe in competition with platforms like Robinhood and Coinbase, which are also entering the prediction market space. The sector remains dominated by private firms Polymarket and Kalshi. Separately, Meta Platforms is reportedly planning to develop a similar platform called 'Arena.' CBOE stock has risen 12% over the past year to $257.42 per share.
Yahoo FinanceCboe Launches Prediction Markets Products to Capitalize on Zero-Day Options Growth
Global markets operator Cboe has launched its first prediction markets products, including binary option contracts based on the Mini-S&P 500 Index, aiming to capitalize on surging consumer demand in the fast-growing prediction markets sector. The contracts are initially available on Interactive Brokers and will roll out to Charles Schwab and other retail brokerages over time. Cboe's move builds on the rapid growth of its zero-day-to-expiry (0DTE) options. The announcement comes amid broader industry interest, with reports that Meta CEO Mark Zuckerberg has directed staff to create a similar prediction markets platform. Combined monthly trading volume on platforms like Kalshi and Polymarket has surged to about $24 billion from less than $5 billion last September, according to Pew Research Center data.
US Top News and AnalysisCharles Schwab enters prediction markets with S&P 500 options
Charles Schwab is partnering with Cboe Global Markets to offer binary options contracts on the S&P 500, marking the brokerage's first foray into prediction markets. These contracts function similarly to yes-or-no wagers on platforms like Kalshi and Polymarket, settling for a fixed cash amount if the index closes above or below a predetermined level. A companion product called 'Plus Zone' will offer partial payouts for near-miss predictions. The move represents a reversal for CEO Rick Wurster, who had been skeptical of prediction markets, but cited competitive pressure. Schwab plans to limit offerings to financial market events and will avoid politics, sports, or entertainment contracts. The launch follows similar offerings by Robinhood and Interactive Brokers, and comes alongside Schwab's recent expansion into direct crypto trading.
Yahoo FinanceCharles Schwab Enters Prediction Markets with S&P 500 Binary Options
Charles Schwab has partnered with Cboe Global Markets to offer binary options contracts tied to the S&P 500, marking its entry into prediction markets. These contracts function as all-or-nothing wagers: holders receive a fixed cash settlement if the index closes above or below a predetermined level. Schwab also plans a companion product called 'Plus Zone' that offers partial payouts for approximate predictions. The move represents a reversal for CEO Rick Wurster, who had previously expressed skepticism about prediction markets, warning of blurred lines between investing and gambling. However, competitive pressure from rivals like Robinhood and Interactive Brokers, which already offer similar event contracts, influenced the decision. Cboe had announced its own prediction markets framework in March 2026, based on a Mini S&P 500 Index contract with potential payouts of $0, partial, or $100. Schwab will limit offerings to verifiable financial market outcomes, avoiding politics, sports, or entertainment contracts. The brokerage has also recently expanded into direct cryptocurrency trading with bitcoin and ether.
Yahoo FinanceCharles Schwab Planning S&P 500 Prediction Markets With Cboe
Charles Schwab is planning to launch prediction markets for the S&P 500 index in partnership with Cboe Global Markets, according to a Wall Street Journal report. The markets will allow users to place binary wagers on whether the index will finish higher or lower than a given price, similar to offerings from platforms like Kalshi and Polymarket. A 'Plus Zone' feature will also pay users based on how close the S&P 500 closes to a target number. The initiative follows CEO Rick Wurster's earlier indication that Schwab would likely enter the prediction markets space, distinguishing it from sports, politics, and entertainment betting. The rollout is expected in the coming months, with potential expansion to other financial benchmarks. The move comes shortly after Schwab launched spot trading in Bitcoin and Ethereum for retail customers.
Yahoo FinanceCharles Schwab Enters Prediction Market Business with Cboe
Charles Schwab is entering the prediction market business by partnering with Cboe Global Markets to offer all-or-nothing options contracts. These contracts allow customers to place yes-or-no wagers on the performance of the S&P 500 index. The move marks a significant expansion for the brokerage into the growing prediction market space, which has gained popularity for event-based trading. The article, published on June 19, 2026, cites people familiar with the matter and includes a photo of CEO Rick Wurster. The initiative positions Schwab to compete with other prediction market platforms by leveraging its existing brokerage infrastructure and Cboe's options trading expertise.
Yahoo Finance