Charles Schwab (SCHW) is working with Cboe Global Markets (CBOE) to expand into prediction markets through contracts that bet on the S&P 500's performance, The Wall Street Journal reported Friday, citing unnamed sources familiar with the matter.
Sources said the contracts will be launched in the coming months, allowing buyers to wager on whether the index will exceed or miss the target price at closing, according to the news outlet. The companies also considered similar contracts for other indexes, the report added.
Charles Schwab and Cboe Global Markets did not immediately respond to MT Newswires' requests for comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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