Cboe Global Markets has launched Cboe Predicts, a prediction-market suite built around binary options on the Mini-S&P 500 Index.
The first products are XSP binary option contracts listed under the symbols XSPBW and XSPBX. They are now available through Interactive Brokers, with Charles Schwab expected to add access in the coming months. Additional retail brokerage platforms are expected to support the contracts over time.
The structure is simple. Traders can take a “yes” position if they expect the Mini-S&P 500 Index to close at or above a selected level, or a “no” position if they expect it to close below that level. A winning contract pays $100. A losing contract pays $0.
XSP tracks one-tenth of the S&P 500 Index, making it smaller than the standard SPX product and more suitable for retail-sized market views. The launch gives Cboe a regulated exchange-traded answer to the surge in prediction-style products that have spread across Kalshi, Polymarket, Robinhood, Interactive Brokers and other trading platforms.
Options Wrapper Keeps Cboe Inside Securities Rails
Cboe’s product is not structured like a crypto prediction-market contract or a CFTC event contract. The XSP products are security options listed on Cboe Options Exchange and cleared through the Options Clearing Corporation.
That framework gives the contracts a different regulatory profile from sports, politics or culture-based prediction markets. Cboe’s first live products are tied to a financial index with a defined closing level, central clearing and exchange surveillance. The contracts trade inside the same broader U.S.-listed options framework used for other securities options.
The launch follows Cboe’s earlier push to bring S&P 500 binary options into prediction-market trading, with Schwab preparing to offer access after Interactive Brokers. Cboe also plans to add XSP vertical spreads through its Quoted Spread Book framework, which would package defined-risk spread trades into a simpler format for traders already familiar with yes-or-no outcomes.
The first XSP binary options are short-dated products. Cboe’s product FAQ lists 0DTE contracts expiring the same trading day and 1DTE contracts expiring the next trading day, with new expirations listed every trading day. Regular trading hours run from 8:30 a.m. to 3:15 p.m. Central Time, while trading in expiring XSPBW options ends at 3:00 p.m. Central Time on expiration day.
Prediction Markets Move Deeper Into Brokerages
Cboe Predicts arrives as prediction markets move from crypto-native apps into mainstream brokerage accounts. Kalshi built a regulated exchange model for event contracts, Polymarket brought onchain prediction markets to global crypto users, and Robinhood expanded event-style products for retail traders.
The category has also started to attract large consumer and technology platforms. Meta is reportedly building Arena as a standalone prediction-markets app, while brokerages are testing whether simple payout structures can bring event-style trading to users who may not want full options strategies.
Financial-index contracts give Cboe a cleaner entry point than political or sports markets. The outcome is tied to a closing index value, the payout is fixed, and the contracts sit inside a familiar derivatives infrastructure. That does not remove trading risk. Binary options can still lose the full premium paid if the selected condition fails at settlement.
The regulatory backdrop remains active. State and federal fights around event contracts have already hit Kalshi and Polymarket, including Kentucky’s lawsuit over alleged unlicensed sportsbook activity. Cboe’s securities-options route avoids some of those gambling-law questions by starting with financial markets and OCC clearing rather than open-ended event categories.
Cboe Predicts is now live through Interactive Brokers with Mini-S&P 500 Index binary options under XSPBW and XSPBX. Schwab access is expected in the coming months, and Cboe’s next product step is the planned XSP vertical-spread format through Quoted Spread Book.
