Schwab and Cboe to launch S&P 500 prediction market products
Charles Schwab plans to launch prediction-market-style yes-or-no options tied to the S&P 500 in partnership with Cboe, the exchange operator announced. The product, reported June 21–22, 2026, will offer binary payouts with defined risk and fixed payouts through Schwab's brokerage platform. Schwab founder Charles Schwab had previously invested in prediction market platform Kalshi in 2021. The entry follows rival brokerages Robinhood and Interactive Brokers, which have already introduced event contracts. Schwab's move signals mainstream financial services firms are increasingly treating event contracts as a core trading product rather than a niche experiment, targeting active traders frustrated by traditional options structures.
Schwab's 39 million brokerage accounts give Kalshi and Polymarket their first rival with existing retail scale and established trust, not a startup fighting for user acquisition. Cboe's regulated options infrastructure means Schwab can bypass the CFTC registration process that slowed earlier entrants.