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

Cboe Global Markets has rolled out the first product in Cboe Predicts, its new prediction markets suite, listing binary options on the Mini-S&P 500 Index (XSP) through Interactive Brokers.

Charles Schwab will add access in the coming months, with other brokers to follow.

Cboe Targets Prediction Markets With Mini-S&P 500 Contracts

According to the press release, the contracts are listed under the symbols XSPBW and XSPBX.

“Cboe Predicts represents the latest expansion of Cboe’s S&P 500 Index (SPX) product suite. XSP allows customers to trade on the performance of the S&P 500 Index (SPX) but is scaled to 1/10th the size of SPX – making it a smaller, more retail-friendly alternative,” the global markets operator said.

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The contracts let traders take a simple yes-or-no position on where the index closes.  A “yes” position pays $100 if the index settles at or above a chosen level. A “no” position pays the same if it settles below.

Cboe routes the products through leading retail brokers and clears them centrally through the Options Clearing Corporation (OCC).

JJ Kinahan, Cboe’s Head of Retail Expansion, tied the move to demand following zero-days-to-expiration (0DTE) options. Rob Hocking, Cboe’s Global Head of Derivatives, framed the launch as an effort to raise standards across the sector.

“We look forward to bringing our experience, trusted market infrastructure, and the deep liquidity of the SPX options ecosystem to prediction markets. Our goal is to help set a higher standard for market integrity, product design and investor protection…” he added.

The firm said that its future plans include adding XSP vertical spreads through Cboe’s patent-pending Quoted Spread Book. Cboe is the latest established firm to enter the territory pioneered by Polymarket and Kalshi. Even Meta reportedly wants in with a standalone app.

The launch lands as prediction markets attract record interest. Open interest across the sector recently hit an all-time high of $1.48 billion.

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