Schwab Enters Prediction Markets with Plans to Launch S&P 500 Event Contracts

Odaily reports that Charles Schwab is preparing to enter the prediction market space through a partnership with Cboe Global Markets. The two companies are developing option-based contracts that will allow clients to place “yes” or “no” bets on the performance of the S&P 500 index. The product will operate in the form of options, paying a fixed cash amount or nothing depending on whether the index closes above or below the target level. Schwab and Cboe also plan to leverage Cboe’s Plus Zone feature to offer related products, where traders can still earn partial returns if their predictions are close to the final market outcome, even if the index does not fully hit the target price. The products are expected to launch within the next few months.