Charles Schwab to launch S&P 500 event-based option contracts

U.S. financial giant Charles Schwab is partnering with Cboe Global Markets to launch a new type of options contract that allows clients to bet for or against movements in the S&P 500 index. According to CoinDesk, this marks Charles Schwab's first entry into the prediction market. While existing prediction market platforms offer futures-like contracts tied to event outcomes, Charles Schwab's product will pay a fixed amount if the index closes above a preset level and nothing if it closes below, functioning similarly to a binary option. The product is scheduled to be offered to clients within the next few months.