Cboe will launch partial payment prediction market contracts

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Investing.com – Cboe Global Markets announced on Monday that it will launch predictive market contracts that offer partial payments based on forecast accuracy, which differs from traditional all-or-nothing structures.

This new format is similar to features in betting applications, allowing users to exit positions early as events unfold. The design draws on concepts including traditional vertical spreads in the options market.

JJ Kinahan, Head of Retail Expansion and Alternative Investment Products at Cboe, said that real-world perspectives are not always binary, and investors should not be confined to a yes-or-no framework.

The exchange will introduce Mini S&P 500 Index prediction market contracts to bring this framework. Previously, Cboe has been working on developing a regulated product that offers all-or-nothing payments using options structures.

Major U.S. exchange operators are seeking opportunities in event prediction markets, which gained widespread attention during the 2024 U.S. presidential election.

Nasdaq is seeking approval from the U.S. Securities and Exchange Commission for prediction market-style options linked to major stock indices. Intercontinental Exchange (NYSE: ICE) has invested up to $2 billion in Polymarket.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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