Charles Schwab Launches S&P 500 Prediction Contracts With Cboe Partnership in Coming Months

According to reports, Charles Schwab is preparing to launch prediction market products linked to the S&P 500 in partnership with Cboe Global Markets in the coming months. The contracts will use a binary structure, paying a fixed cash amount if the index closes above or below a specified level, with predefined risk for traders.

Schwab is restricting its prediction offerings to financial-market events only, excluding politics, sports, or entertainment. The brokerage will also incorporate Cboe's Plus Zone feature, which provides partial rewards when forecasts are close to the final result. According to reports, the companies have discussed expanding the product to additional financial indices beyond the S&P 500.