Cboe Launches Predictive Market Product Cboe Predicts with First Binary Contracts on S&P 500 Index

On June 24, Cboe Global Markets announced the launch of its new predictive market product suite, starting with Cboe Predicts. This product line includes binary options contracts based on the Mini S&P 500 Index (XSP), with trading symbols XSPBW and XSPBX. These contracts are currently available for trading on Interactive Brokers and are expected to be launched on Charles Schwab in the coming months, with plans to gradually open up to more retail brokerage platforms. Cboe Predicts is the latest extension of Cboe's S&P 500 Index (SPX) product series. The XSP allows clients to trade on the performance of the S&P 500 Index, but its contract size is only one-tenth that of the SPX, making it smaller and more aligned with retail customer needs. Traders can express their views on the XSP closing price by choosing a 'call' position (receiving $100 if the index settlement price reaches or exceeds a specified level, otherwise $0) or a 'put' position (receiving $100 if the settlement price is below that level, otherwise $0).