S&P 500 · Wall Street · Polymarket · The Block
The CFTC has argued the opposite, that licensed prediction markets answer to its exclusive federal jurisdiction
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
Cboe executives have said they see an opening for products that bridge the two worlds, pitching binary options as an on-ramp for traders who have tried prediction markets but not yet graduated to more complex options strategies, per the Journal.
Key facts
- Schwab's entry into the prediction contract space brings roughly $13 trillion in client assets and tens of millions of brokerage accounts to the table
- Charles Schwab is preparing to offer options contracts that let customers place yes-or-no wagers on where the S&P 500 will close, its first step into the prediction-market arena, the Wall Street
- The brokerage is building the product with Cboe Global Markets and plans to make it available in the coming months, per the report
- That currently rules out bets on the World Cup or next year's Oscars
Summary
Charles Schwab is preparing to offer options contracts that let customers place yes-or-no wagers on where the S&P 500 will close, its first step into the prediction-market arena, the Wall Street Journal reported Friday, citing people familiar with the matter. The brokerage is building the product with Cboe Global Markets and plans to make it available in the coming months, per the report. Reuters separately confirmed the partnership, citing a person familiar who declined to elaborate. Schwab also plans to roll out a version that uses a Cboe feature called the "plus zone," which hands traders a partial payout when they are close, but not exactly on target, the Journal reported. The structure sets Schwab's offering apart from Kalshi and Polymarket, which list event contracts rather than options.