Cboe Launches Prediction Markets With Yes-or-No S&P 500 Index Contracts

Cboe launches prediction markets-style binary options tied to the Mini-S&P 500 Index, scaled to one-tenth the S&P 500 benchmark, allowing traders to take yes-or-no positions through broker platforms including Interactive Brokers, with fixed $100 or $0 payouts at settlement.

Key Takeaways:

• • Cboe launched XSP binary options via Interactive Brokers, entering retail-focused prediction-style derivatives.
• • Contracts offer fixed $100 or $0 payouts based on index settlement, simplifying S&P 500 exposure.
• • Charles Schwab plans to add access as Cboe expands distribution.

Binary Options Introduced Through Retail Brokerage Channels

Cboe Global Markets (CBOE) announced on June 23, 2026, the launch of Cboe Predicts, a new suite of binary options linked to the Mini-S&P 500 Index (XSP).

The first contracts, listed under symbols XSPBW and XSPBX, are now available through Interactive Brokers, marking the initial phase of distribution through retail brokerage platforms, with additional firms expected to integrate access over time.

Charles Schwab is among the brokerages preparing to offer the contracts, reflecting a broader rollout strategy centered on intermediated trading systems rather than direct exchange access.

The product is built around XSP, which tracks the S&P 500 Index at one-tenth the size of standard SPX contracts. This smaller scale reduces capital requirements while maintaining exposure to the broader equity benchmark.

Cboe Global Markets stated:

Traders can express a view on where XSP may close by taking a ‘yes’ position (paying $100 if the index settles at or above a specified level, or $0 otherwise) or a ‘no’ position (paying $100 if it settles below that level, or $0 otherwise).”

Execution remains within existing listed options infrastructure, with trades routed through regulated brokerage platforms that already support equity derivatives.

Clearing Infrastructure and Product Expansion Plans

The contracts are cleared through the Options Clearing Corporation (OCC), which manages settlement and counterparty risk for U.S.-listed options. This integration places the binary products within established regulatory and operational frameworks governing exchange-traded derivatives.

James Kostulias, Head of Trading Services at Charles Schwab, stated: “We support approaches that bring transparency, defined risk, and investor education to financial-related prediction markets.”

The executive continued:

“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.”

Cboe has paired the rollout with educational initiatives, including resources from The Options Institute and a dedicated hub focused on prediction markets. The company also plans to expand the suite to include XSP vertical spreads using its Quoted Spread Book framework, which standardizes multi-leg strategies while preserving defined risk structures.