Schwab to join prediction markets race with S&P 500 event-based options: WSJ

Charles Schwab is partnering with Cboe Global Markets to launch yes-or-no options contracts tied to the S&P 500, marking Schwab’s first move into prediction markets. The product, expected to roll out to Schwab customers in the coming months, would work like a binary option, paying a fixed amount or expiring worthless depending on whether the index closes above or below a preset level, according to CoinDesk, citing a Wall Street Journal report. The firms are also exploring “Plus Zone” contracts with partial payouts and may expand to other financial benchmarks, while avoiding politics- or sports-linked markets.