Charles Schwab to Launch S&P 500 Event Contracts, Entering the Prediction Market Sector

According to a report by Golden Finance on June 20, citing *The Wall Street Journal*, Charles Schwab is preparing to enter the prediction market sector through a collaboration with Cboe Global Markets. They are developing option-based contracts that allow clients to place “yes” or “no” bets on the performance of the S&P 500 Index. Unlike prediction market platforms such as Polymarket and Kalshi, which typically offer futures-style contracts, Schwab’s product will operate in the form of options, paying a fixed cash amount or nothing at all depending on whether the index closes above or below the target level. Charles Schwab and Cboe also plan to leverage Cboe’s “Plus Zone” feature to launch related products. Even if the index does not fully reach the target price, traders can still earn partial returns as long as their predictions are close to the final market outcome. These products are expected to be launched in the coming months.