Schwab enters prediction markets with S&P options

Charles Schwab is venturing into prediction markets by partnering with Cboe Global Markets to launch new event-based options contracts on the S&P 500. These contracts will function as binary options, allowing customers to wager on whether the index will close above or below a specified price. This move positions Schwab alongside competitors like Coinbase and Robinhood, which have also expanded into this growing sector. The offering aims to provide a novel way for clients to speculate on market movements, focusing strictly on financial benchmarks rather than other event types.