Nasdaq Ventures into Prediction Markets, Plans to Launch S&P 100 Index Binary Options

BlockBeats News, March 2nd, Nasdaq is planning to launch an options contract that will allow betting on major stock indices with a “yes or no” proposition, becoming the latest exchange operator to enter the rapidly growing prediction market.

According to a rule change proposal filed with the U.S. Securities and Exchange Commission, the company aims to list “binary options” on its flagship Nasdaq 100 Index and Nasdaq 100 Micro Index.

The filing indicates that Nasdaq's contracts will be priced between 1 cent and 1 dollar, reflecting the market's view on the likelihood of a particular outcome. This will mark 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 will occur.

Binary options are a simplified version of options contracts where the payout depends on the outcome of a “yes or no” proposition. Financial contracts listed by the prediction market industry involve sports, politics, and pop culture. Unlike event contracts from Kalshi, Polymarket US, and the CME Group regulated by the U.S. Commodity Futures Trading Commission, binary options fall under the oversight of the U.S. Securities and Exchange Commission. Nasdaq's contracts are currently awaiting SEC approval.