Cboe Joins Prediction Market Race With Mini S&P 500 Binary Options

Cboe Global Markets launched the first product in its new Cboe Predicts prediction-market suite: binary options tied to the Mini-S&P 500 Index (XSP), initially available through Interactive Brokers, with Charles Schwab access expected later. The contracts let traders bet yes/no on whether the index will close above or below a set level, and are cleared by OCC. The move extends Cboe’s S&P 500 ecosystem and targets retail demand for simplified derivatives, especially amid strong interest in 0DTE-style trading. The launch also comes as prediction markets gain traction, with sector open interest recently reaching a record $1.48 billion. Market impact is mainly on the derivatives and prediction-market space, reinforcing competition with Polymarket and Kalshi rather than signaling an immediate directional move in equities.