Cboe launches prediction markets on zero-day options momentum

Cboe Global Markets launched its first prediction-markets contracts Tuesday, the latest effort by a major exchange operator to tap surging consumer demand for event-based bets. The products are binary options tied to the Mini-S&P 500 Index, the company said in a press release.

Combined monthly trading volume on Kalshi and Polymarket has climbed to about $24 billion in April from less than $5 billion in September, according to Pew Research Center data. The surge reflects a broader shift in retail trading toward short-duration, binary-payout products.

Cboe's contracts are available on Interactive Brokers trading platform now. Charles Schwab will offer them in the coming months, the company said. Additional retail brokerage firms will gain access over time.

"We have seen continued customer demand for shorter-dated, outcome-based trading," JJ Kinahan, head of retail expansion and alternative investment products at Cboe, said in the statement. The executive tied the new offering to the rapid growth of the exchange's zero-day-to-expiry, or 0DTE, options, which allow traders to bet on intraday index moves.

Separately, Meta Platforms CEO Mark Zuckerberg has directed staff to build a prediction-markets platform, CNBC reported Tuesday, citing a person familiar with the plans. The New York Times was first to report the initiative. Shares of DraftKings and Robinhood Markets ended lower Tuesday on the news.

AlphaScala's proprietary scoring system rates Charles Schwab (SCHW) at 61 and Interactive Brokers (IBKR) at 72, both Moderate. The Pew data shows combined volume on Kalshi and Polymarket more than quadrupled in seven months.