NEW YORK, June 18 (World Daily Times) — Charles Schwab Corp. (NYSE: SCHW) is working with Cboe Global Markets Inc. (Nasdaq: CBOE) on a new product that would let customers make all-or-nothing bets on the S&P 500, according to people familiar with the matter, as reported by The Wall Street Journal.
If launched, the contracts would give investors a simple outcome: the trade pays a fixed amount if the index ends up on the right side of a set level, or it pays nothing if it does not. In plain terms, it would be a yes-or-no wager tied to the direction of the S&P 500, the benchmark index that tracks 500 large U.S. companies.
The reported products are expected to reach customers in the coming months, according to Reuters-distributed coverage of the same matter.
What is Schwab trying to offer?
The reported plan centers on binary, or all-or-nothing, options contracts. That means the buyer is not picking a stock to own or a traditional option contract to hedge a portfolio. Instead, the customer is taking a position on whether the S&P 500 will finish above or below a certain level at a set time.
Because the payout is fixed, these contracts can look more like a straight bet than a standard investment. That is part of why they have drawn attention from people who follow the fast-growing prediction-market business.
Why does this matter for investors?
For Schwab clients, a new product could mean another way to trade on market moves without buying individual stocks or funds. For some customers, that could expand access to a low-cost, short-term speculation tool. For others, it could raise concerns about whether brokerage platforms are moving closer to gambling-style products.
For Cboe, the deal would push the exchange operator further into a market where the appeal is speed, simplicity and a clear yes-or-no result. That puts it in a business area that has increasingly overlapped with prediction markets.
The main stakeholders are Schwab customers, Cboe’s trading partners, and investors who follow how large brokerage firms and exchanges compete for trading activity and commissions.
How does this fit with Schwab’s earlier position?
The reported collaboration stands in contrast to comments Schwab Chief Executive Rick Wurster made in December 2025.
In a Wall Street Journal live coverage item, Wurster said Schwab was not interested in prediction markets. He said: “I believe there is a clear distinction between gambling and investing. Merging these two concepts is not beneficial.”
The supplied reporting does not explain what changed between that comment and the newly reported work with Cboe.
Has the product been approved?
Not based on the material provided.
The reports are based on unnamed people familiar with the matter. The supplied material does not include a company filing, a public statement from Schwab or Cboe, or a regulator’s approval. It also does not say whether the contracts have cleared any review or what fees, eligibility rules or trading venue would apply.
So for now, the key point is that the product has been reported, not officially announced in the source material reviewed here.
What should readers watch next?
The biggest questions are whether Schwab and Cboe formally announce the product, how regulators respond, and whether the contracts are offered through Schwab-branded platforms or another venue.
Investors should also watch whether the product is aimed at everyday brokerage customers, since that would shape how broadly it could affect trading behavior and how strongly critics might object to it.
For now, the reported move signals that a major brokerage and a major exchange operator are testing whether there is room in mainstream finance for prediction-style trading tied to one of the most closely watched U.S. stock benchmarks.
