Cboe Global Markets has launched the first products under Cboe Predicts, its new prediction markets suite focused on financial outcomes.

The initial contracts are binary options based on the Mini S&P 500 Index, which tracks the S&P 500 at one tenth of its standard size.

The products allow market participants to express a view on whether the index will close above or below a specified level.

Each contract has a fixed outcome determined by the index settlement value at expiration.

Cboe developed the product as a simpler extension of its existing S&P 500 options business, following increased demand for short dated and outcome based contracts.

The exchange said the structure is designed to make financial prediction markets more transparent by using pricing and liquidity from the established S&P 500 options ecosystem.

Unlike many event contracts, Cboe’s products are classified as securities options and operate under the same regulatory framework as other listed US options.

The contracts are centrally cleared through the Options Clearing Corporation, which manages settlement and counterparty risk.

Cboe plans to expand access through additional retail brokerages over time.

The exchange is also developing a framework that would package vertical spread strategies into a more intuitive format. That future product would offer a middle payout range rather than only an all or nothing result.

The launch comes as prediction markets expand beyond politics and sports into traditional financial markets.

Cboe said it may eventually introduce contracts linked to additional stock indexes and individual companies.