Schwab to join prediction markets race with S&P 500 event-based options. The planned offering would let customers bet on index moves as Coinbase and Robinhood expand in the sector.

Charles Schwab is preparing to launch a new event-based options product tied to the S&P 500 index, in partnership with Cboe Global Markets, marking its first move into prediction‑style markets. The contracts are structured as binary options: traders receive a fixed cash payout if the S&P 500 closes on the specified side of a preset level at expiration, and nothing if it does not. A variant using Cboe’s “plus zone” feature is also being discussed, which would provide a partial payout when the closing level is close to, but not exactly at, the trader’s target. The products are expected to be listed on Cboe and offered to Schwab clients in the coming months, subject to regulatory and operational sign‑off. The move places Schwab in direct competition with platforms expanding into event-driven and prediction-market products, including crypto-linked venues and retail brokerages such as Coinbase and Robinhood, which have recently rolled out their own prediction-focused offerings. Unlike markets that facilitate bets on elections, sports, or entertainment outcomes, Schwab and Cboe are initially confining these contracts to financial index outcomes, which fit more clearly within existing U.S. securities and derivatives rules and may avoid some of the legal scrutiny facing platforms like Kalshi and Polymarket. With around $13 trillion in client assets and millions of customer accounts, Schwab’s entry could significantly broaden the retail audience for regulated, exchange-traded binary options and further blur the line between traditional brokerage products and prediction markets.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Charles Schwab plans S&P 500 event-based options push as prediction markets expand (tradersunion.com)
• Charles Schwab Enters Prediction Markets With S&P 500 Event-Based Options (bitcoinworld.co.in)
• Schwab Enters Prediction Markets with S&P 500 Event Options ... (x.com)
• Charles Schwab prepares S&P 500 binary options launch with Cboe (tradersunion.com)
• Schwab Joins Prediction Market Party, But Sports Not on the Agenda (casino.org)

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