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Cboe Global Markets has launched its first prediction market products, introducing binary option contracts based on the Mini-S&P 500 Index (XSP), listed under the symbols XSPBW and XSPBX. The contracts are now live on Interactive Brokers, with a rollout to Charles Schwab expected in the coming months and additional retail brokerage platforms to follow.
The new product line, branded as Cboe Predicts℠, forms part of Cboe's broader S&P 500 Index (SPX) product suite. The XSP contracts are scaled to one-tenth the size of SPX, positioning them as a retail-accessible instrument. Traders can take a "yes" position, receiving $100 if the index settles at or above a specified level, or a "no" position, receiving $100 if it settles below. Both pay $0 if the condition is not met.
JJ Kinahan, Head of Retail Expansion and Alternative Investment Products, Cboe Global Markets
JJ Kinahan, Head of Retail Expansion and Alternative Investment Products, Cboe Global Markets said:
"Following the success of SPX 0DTE options, we have seen continued customer demand for shorter-dated, outcome-based trading, creating a natural extension for Cboe to introduce XSP binary options. Cboe's S&P 500 options suite has long provided traders with flexibility to define their outcomes through traditional options strategies. With Cboe Predicts, we are expanding that choice by offering simple 'yes-or-no' payout event contracts, supported by dedicated educational resources designed to help customers participate more confidently and responsibly."
Cboe has also announced a future release that will enable trading of XSP vertical spreads through its proprietary Quoted Spread Book℠ (QSB℠) framework, described as a patent-pending system designed to package widely used options strategies into a simpler format aimed at newer traders.
The products are centrally cleared through the Options Clearing Corporation (OCC) and will trade within the same regulatory framework as US-listed options. Cboe is using an intermediated model that involves leading retail brokers and is designed to encompass standards for customer education, market access, and oversight.
Mike Hansen, Chief Clearing and Settlement Services Officer, Options Clearing Corporation
Mike Hansen, Chief Clearing and Settlement Services Officer, Options Clearing Corporation said:
"OCC stands ready to bring the same clearing infrastructure and risk management discipline that underpins all of the products we clear to the new binary options. Our commitment to operational excellence and financial integrity ensures that participants can engage with confidence, knowing every transaction is supported by sound, well-established clearing and settlement services."
Milan Galik, Chief Executive Officer, Interactive Brokers commented:
"Investors increasingly seek products that allow them to express a specific view on future events and market outcomes. Cboe's binary options and Mini-S&P 500 Index contracts provide another way to do that, and we are pleased to make them available to Interactive Brokers clients."
James Kostulias, Head of Trading Services, Charles Schwab
James Kostulias, Head of Trading Services, Charles Schwab said:
"We support approaches that bring transparency, defined risk, and investor education to financial-related prediction markets. We plan to offer clients access to these binary options contracts in the coming months, building on our existing platform and demand from active traders."
Rob Hocking, Global Head of Derivatives, Cboe Global Markets
Rob Hocking, Global Head of Derivatives, Cboe Global Markets commented:
"For more than 50 years, Cboe has built and operated some of the world's most established and trusted markets. We look forward to bringing our experience, trusted market infrastructure and the deep liquidity of the SPX options ecosystem to prediction markets. Our goal is to help set a higher standard for market integrity, product design and investor protection by offering access through a regulated securities exchange and central clearing through OCC."
Alongside the product launch, Cboe has introduced educational resources including a prediction markets resource hub and courses through The Options Institute, covering market basics and decision-making through to core options concepts.
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