Cboe launches binary options suite tied to Mini-S&P 500 Index

Cboe Global Markets (Cboe: CBOE) has launched a prediction markets suite called Cboe Predicts, introducing binary option contracts based on the Mini-S&P 500 Index (XSP), listed under the symbols XSPBW and XSPBX.

The contracts are now available on Interactive Brokers, with Charles Schwab expected to offer access in the coming months. Additional retail brokerage platforms are also expected to follow over time.

The XSP contracts are scaled to 1/10th the size of the S&P 500 Index (SPX). Traders can take a "yes" position, which pays $100 if the index settles at or above a specified level, or $0 otherwise, or a "no" position, which pays $100 if it settles below that level, or $0 otherwise.

The contracts are centrally cleared through the Options Clearing Corporation (OCC) and trade within the same regulatory framework as U.S.-listed options.

Cboe also said it plans to enable trading of XSP vertical spreads through its patent-pending Quoted Spread Book framework in a future release, packaging options strategies into a format aimed at newer traders.

"Following the success of SPX 0DTE options, we have seen continued customer demand for shorter-dated, outcome-based trading, creating a natural extension for Cboe to introduce XSP binary options," said JJ Kinahan, Head of Retail Expansion and Alternative Investment Products at Cboe.

Milan Galik, Chief Executive Officer of Interactive Brokers, said the contracts "provide another way" for investors to express a view on future market outcomes.

James Kostulias, Head of Trading Services at Charles Schwab, said the firm plans to offer clients access to the binary options contracts in the coming months.

Cboe said it has also introduced educational resources, including a prediction markets resource hub and courses through The Options Institute, to accompany the product launch.

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