Charles Schwab is reportedly working with Cboe to introduce new binary options contracts linked to the S&P 500 index. This initiative represents the brokerage's entry into the realm of prediction-market-style products.
The proposed binary contracts would allow investors to make straightforward yes-or-no bets on the performance of the S&P 500, a concept that has gained traction in recent years.
Currently, the prediction market space is largely led by platforms like Kalshi and Polymarket, which have established themselves in this niche market.