Key facts
- Cboe Global Markets has launched its prediction market suite, Cboe Predicts.
- The suite features binary option contracts based on the Mini-S&P 500 Index.
- These contracts allow users to predict if the S&P 500 will reach a specific level.
- Cboe's offering competes directly with platforms like Kalshi and Polymarket.
- A new 'plus' feature allows for partial payouts based on index movement.
Cboe Global Markets is reintroducing binary options on the S&P 500 index, a move that places it in direct competition with prediction market platforms such as Kalshi and the crypto-native Polymarket. The exchange is also adding a new feature, dubbed 'plus,' which is built on a vertical spread structure. This allows traders to receive partial payouts as the index moves, offering a more defined risk profile compared to the traditional all-or-nothing outcome of binary options. Cboe's previous attempt with binary options on the S&P 500 and Cboe Volatility Index in 2008 failed to gain traction and was withdrawn. The current re-entry is seen as a response to the growing popularity of prediction markets, evidenced by significant trading volumes on platforms like Polymarket and Kalshi, and also follows Cboe's success with same-day S&P 500 options. Interactive Brokers is currently offering the new contracts, with Charles Schwab slated to offer them later this year, alongside other retail brokerage platforms.