NEW YORK, June 18 (World Daily Times) — Charles Schwab Corp. (NYSE: SCHW) is reported to be working with Cboe Global Markets Inc. (CBOE) on a new contract tied to the S&P 500 that would let customers make an all-or-nothing bet on how the index performs, according to people familiar with the matter, as reported by The Wall Street Journal and Reuters.
If the reported product reaches market, it would give Schwab customers a new way to trade on an index outcome rather than buy stocks or place a standard options trade. The contract would pay cash if the S&P 500 meets the condition attached to the bet, and nothing if it does not.
What is a prediction-market style contract?
Prediction markets let people buy and sell contracts tied to an event or result. In this case, the reported contract is tied to the S&P 500, the U.S. stock index that tracks large companies. The trade is basically yes or no. That makes it easy to understand, but it also means the loss can be total if the bet does not work out.
This idea is not entirely new. In February, the Journal reported that Cboe had been talking with brokerage firms about bringing back all-or-nothing options for individual investors. The reported Schwab move would take that idea a step further by linking it to one of the best-known U.S. market benchmarks.
Why this matters for Schwab and Cboe
Schwab is a large retail brokerage, so a move into this kind of product could put a new, more speculative trade in front of a wide customer base. Cboe, which operates exchange markets, would gain another product line if the plan goes forward.
For customers, the benefit would be another way to express a view on the market. For investors in Schwab and Cboe, the question is whether the product can attract trading activity without blurring the line between investing and gambling.
The reported plan also matters because it marks a notable shift from comments Schwab Chief Executive Rick Wurster made in December 2025. At that time, Wurster said: “I believe there is a clear distinction between gambling and investing. Merging these two concepts is not beneficial.”
What is still unknown
The material reviewed for this report does not include an official Schwab or Cboe announcement, a regulatory filing, or contract terms. It is not clear how the product would be priced, which customers would be eligible, or whether it would run through Schwab’s own platform or another venue.
Reuters reported that people familiar with the matter said the contracts could reach customers in the coming months. For New York’s financial community, the reported move is another sign that brokerage firms and exchanges are looking for new retail products that can keep investors active while competing for trading business.
