Nasdaq Enters Prediction Market, Plans to Launch 100 Index Binary Options


According to Jin10, Nasdaq plans to introduce an options contract that allows users to bet "yes or no" on major stock indices, becoming the latest exchange operator to enter the rapidly growing prediction market.
Based on a rule change proposal filed with the U.S. Securities and Exchange Commission, the company aims to list "binary options" on its flagship products, the Nasdaq 100 Index and the Nasdaq 100 Micro Index.
The documents show that Nasdaq's contracts will be priced between 1 cent and $1, reflecting market perceptions of the likelihood of a particular outcome. This will be Nasdaq's first foray into mirror prediction market products. These so-called "outcome-related options" will allow traders to take binary positions on whether a specific event occurs.
Binary options are a simplified version of options contracts, with payouts depending on the outcome of a "yes or no" proposition. Prediction market industry-listed financial contracts involve sports, politics, and pop culture. Unlike event contracts offered by CFTC-regulated platforms like Kalshi, Polymarket US, and CME, binary options are regulated by the U.S. Securities and Exchange Commission. Nasdaq's contracts are currently awaiting SEC approval.
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