NEW YORK, June 18 (World Daily Times) — Charles Schwab Corp. (SCHW) is working with Cboe Global Markets Inc. (CBOE) on a new product that would let retail 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. The contracts would pay a fixed cash amount if the index finished on one side of a set level, or nothing if it did not.
The reported plan matters because it could give Schwab customers another way to trade on market direction without buying shares of stock. It also would move one of the country’s biggest brokerages closer to the fast-growing world of prediction markets, where people bet on an outcome instead of on a company.
What are all-or-nothing contracts?
The product described in the reporting is a binary contract tied to the S&P 500, a benchmark index of 500 large U.S. companies. In simple terms, the trade works like a yes-or-no question. If the index ends where the contract says it must, the trader gets paid. If it does not, the contract expires with no payout.
That is different from regular stock investing. A stock can rise or fall in value over time. A binary contract has only two outcomes.
Why Schwab and Cboe might want this
The Wall Street Journal reported earlier that Cboe had been discussing bringing back all-or-nothing contracts for individual investors. The new reporting says Schwab is now working with Cboe on the idea.
For Schwab, the product could give customers another trading choice inside a familiar brokerage platform. For Cboe, it could create a new exchange product tied to one of the most watched measures of the U.S. market.
The idea also shows how large financial firms are testing demand for products that blend trading and betting. Supporters say such contracts can be a simple way to express a view on the market. Critics say they can look too much like gambling.
That concern showed up in comments Schwab chief executive Rick Wurster gave in a Wall Street Journal live coverage item in December 2025. Wurster said, “I believe there is a clear distinction between gambling and investing. Merging these two concepts is not beneficial.”
What is still unclear?
The reporting does not include a company filing, an official Schwab statement, a Cboe statement, or a regulator record confirming the product. It also does not say whether the contracts have been approved, what fees they would carry, or exactly which customers could buy them.
Timing remains vague. Reuters-distributed coverage said the contracts could reach customers in the coming months or near future.
Why investors should care
If the reported plan goes forward, Schwab customers could get a new product built around a broad U.S. stock index rather than a single company. That may appeal to active traders who want a simple bet on the direction of the market.
For investors, the bigger question is how far brokerage firms should go in offering products that resemble wagers. The reported collaboration suggests Schwab and Cboe think there is demand. Wurster’s earlier comment shows the company has also been wary of mixing investing with gambling language.
For now, the reporting points to an experiment, not a finished launch. The product details, approval path and rollout schedule remain unclear.
