Cboe launches Cboe Predicts, a new prediction markets platform

Cboe Global Markets is taking a major step in the world of prediction markets. The company is launching Cboe Predicts, a new platform on which the first products are immediately available. These are binary option contracts linked to the Mini S&P 500 Index, better known as XSP.

Binary Options on the Mini S&P 500

The new contracts trade under the symbols XSPBW and XSPBX and are one-tenth the size of standard S&P 500 Index options (SPX). This makes them more accessible to smaller and retail investors. The contracts are already tradable via Interactive Brokers, and in the coming months Cboe will roll out the platform to Charles Schwab. More retail brokers will follow afterwards.

Traders can take a position on where the XSP closes. A trader who takes a “yes” position receives $100 if the index closes at or above a certain level. If the index closes below that level, the payout is $0. With a “no” position, the opposite applies. This makes the product simple and transparent.

Regulation and Clearing via Existing Infrastructure

A notable aspect of Cboe Predicts is that the contracts are cleared through the Options Clearing Corporation (OCC). This is the same clearing house that processes US exchange-listed options. As a result, the new prediction products fall under the existing regulatory framework and supervision, providing additional certainty for participants.

Cboe Predicts is an extension of the company’s existing S&P 500 product offering. The choice of XSP as the underlying instrument is no coincidence: it is a smaller, more retail-friendly variant of SPX, making the platform more accessible to a broader group of investors. Prediction markets are a fast-growing market category, and with this launch, Cboe is positioning itself as a serious player in this segment.