Not sure what a callback would look like, or what would trigger it. There are interrupts in the quadrature hardware, but those all seem to be related to the index pulse.
On the ELS board here, I brought the spindle encoder A signal to a second pin. Then used a pin interrupt on that signal to trigger a capture of all of the hardware encoder values (and also data logging for debugging). This way the hardware encoder is free to do as it pleases, but I still have a signal synchronous to the spindle that can run code depending on the spindle position. By time stamping that spindle encoder A signal edge AND capturing the four encoder values, at least I have a snapshot of where everything was and when. In my case, that rising edge of the A pulse happens 2000 times per revolution. Which should be plenty fast for anything I'd need to keep track of.
The reason I brought the signal to two pins was because I couldn't sort out an easy way to map an interrupt to that pin once it was mapped to the hardware encoder. The XBAR wouldn't allow that. But a simple wire trace would give the option.