Charles Schwab is reportedly working with Cboe Global Markets to introduce all-or-nothing options contracts that would allow customers to place yes-or-no wagers on the performance of the S&P 500, according to Reuters.
The planned products would be binary options, which pay a set cash settlement or nothing depending on the performance of the underlying index. According to the report, Schwab is expected to make the products available to customers in the coming months.
A person familiar with the matter confirmed to Reuters that Cboe is working with Charles Schwab to offer the products but did not provide further details. Charles Schwab did not immediately respond to Reuters’ request for comment.
The move would come as prediction markets and event contracts have become increasingly popular. These products gained significant attention during the 2024 U.S. presidential election and have since expanded into an asset class that lets investors wager on events ranging from monetary policy to sports tournaments.
Other trading platforms, including Robinhood and Interactive Brokers, have introduced event contracts in recent months. The Wall Street Journal also reported that Schwab is rolling out an options offering with a Cboe feature that allows traders to receive a partial payout if they are mostly correct, even if the closing price of the index is not exactly what they predicted.
