Schwab to join prediction markets race with S&P 500 event-based options: WSJ
The planned offering would let customers bet on index moves as Coinbase and Robinhood expand in the sector.
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Summary
- Charles Schwab is partnering with Cboe Global Markets to offer new yes-or-no options contracts on the S&P 500, marking the brokerage’s first move into prediction markets.
- The planned product will function like a binary option, paying a fixed amount or nothing based on whether the index closes above or below a preset level, with rollout to Schwab customers expected in the coming months.
- Schwab and Cboe are exploring related contracts using Cboe’s Plus Zone feature and may expand to other financial benchmarks, while avoiding markets tied to politics, sports or other nonfinancial events.
