VIX owner Cboe jumps into prediction markets to build on zero-day options growth
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- Cboe launched its first prediction markets product, offering binary option contracts based on the Mini-S&P 500 Index, per a Tuesday press release.
- The contracts are available now on Interactive Brokers and will roll out at Charles Schwab over the coming months, with additional retail brokerage platforms to follow.
- Combined monthly global trading volume on Kalshi and Polymarket jumped to about $24 billion in April from less than $5 billion in September 2024, per Pew Research Center data cited in the report.
- JJ Kinahan, Cboe's head of retail expansion and alternative investment products, said the launch aims to build on the firm's fast-growing zero-day-to-expiry (0DTE) options business and cited demand for "shorter-dated, outcome-based trading."
- Meta CEO Mark Zuckerberg has separately directed staff to build a prediction markets platform, per CNBC citing the New York Times, sending DraftKings and Robinhood shares lower on Tuesday.
Why it matters: Cboe's entry pipes prediction markets directly to mainstream retail brokerages (Interactive Brokers, then Schwab), and the explicit 0DTE framing tells you the exchange plans to treat these like short-duration derivatives — a different posture than Kalshi or Polymarket. The simultaneous Meta report, which dropped DraftKings and Robinhood, shows traditional exchanges and Big Tech are converging on the same fast-growing vertical at the same moment.
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