Cboe Global Markets announced on June 23, 2026, the launch of Cboe Predicts, a suite of binary options linked to the Mini-S&P 500 Index (XSP), with initial availability through Interactive Brokers. The contracts, listed under symbols XSPBW and XSPBX, offer fixed $100 or $0 payouts based on whether the index settles at or above a specified level, entering the retail-focused prediction-style derivatives market. Charles Schwab plans to add access in the coming months as Cboe expands distribution through additional brokerage platforms. The launch simplifies S&P 500 exposure for retail traders by reducing capital requirements through XSP's one-tenth scale relative to standard SPX contracts while maintaining defined-risk structures within existing listed options infrastructure.
Interactive Brokers Provides Initial Access to XSPBW and XSPBX Contracts
The XSPBW and XSPBX contracts became available through Interactive Brokers on June 23, 2026, marking the first phase of distribution through retail brokerage platforms. The product is built around XSP, which tracks the S&P 500 Index at one-tenth the size of standard SPX contracts.
Cboe Global Markets stated: "Traders can express a view on where XSP may close by taking a 'yes' position (paying $100 if the index settles at or above a specified level, or $0 otherwise) or a 'no' position (paying $100 if it settles below that level, or $0 otherwise)."
Execution remains within existing listed options infrastructure, with trades routed through regulated brokerage platforms that already support equity derivatives. Charles Schwab is among the brokerages preparing to offer the contracts.
OCC Clears Contracts as Cboe Plans Vertical Spread Expansion
The contracts are cleared through the Options Clearing Corporation (OCC), which manages settlement and counterparty risk for U.S.-listed options. This integration places the binary products within established regulatory and operational frameworks governing exchange-traded derivatives.
James Kostulias, Head of Trading Services at Charles Schwab, stated: "We support approaches that bring transparency, defined risk, and investor education to financial-related prediction markets." The executive continued: "We plan to offer clients access to these binary options contracts in the coming months, building on our existing platform and demand from active traders."
Cboe has paired the rollout with educational initiatives, including resources from The Options Institute and a dedicated hub focused on prediction markets. The company plans to expand the suite to include XSP vertical spreads using its Quoted Spread Book framework, which standardizes multi-leg strategies while preserving defined risk structures.
FAQ
What did Cboe launch on June 23, 2026?
Cboe Global Markets launched Cboe Predicts, a suite of binary options linked to the Mini-S&P 500 Index (XSP), with contracts listed under symbols XSPBW and XSPBX available through Interactive Brokers.
How do XSP binary options payouts work?
The contracts offer fixed $100 or $0 payouts based on index settlement. A 'yes' position pays $100 if XSP settles at or above a specified level, or $0 otherwise. A 'no' position pays $100 if it settles below that level, or $0 otherwise.
What is Cboe's expansion plan for the product?
Cboe plans to expand the suite to include XSP vertical spreads using its Quoted Spread Book framework. Charles Schwab plans to offer clients access to these binary options contracts in the coming months.
