Charles Schwab, Cboe Plan S&P 500 Binary Options as Prediction Markets Gain Traction
Updated
Updated · Reuters · Jun 19
Charles Schwab, Cboe Plan S&P 500 Binary Options as Prediction Markets Gain Traction
3 articles · Updated · Reuters · Jun 19
Summary
Charles Schwab plans to offer customers S&P 500 binary options in the coming months, letting them make yes-or-no bets that pay a fixed cash amount or nothing, the Wall Street Journal reported.
Cboe is working with Schwab on the rollout, according to a person familiar with the matter, and Schwab is also preparing an options feature that pays traders partially when their index call is close but not exact.
The move pushes Schwab into a fast-growing prediction-market segment that expanded during the 2024 U.S. presidential election and now spans wagers on monetary policy, sports and other events.
Robinhood and Interactive Brokers have already launched event contracts in recent months, adding competitive pressure as brokers test investor appetite for these products.