Nasdaq enters prediction markets, plans to launch 100 Index binary options

PANews March 2 News: Nasdaq plans to launch an options contract that allows “yes or no” bets on major stock indices, becoming the latest exchange operator to enter the rapidly growing prediction market industry. 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 products, the Nasdaq 100 Index and the Nasdaq 100 Micro Index. The documents show that Nasdaq contract prices will range from 1 cent to $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 payoffs 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 regulated by the U.S. Commodity Futures Trading Commission, such as Kalshi, Polymarket US, and CME Group, binary options are regulated by the U.S. Securities and Exchange Commission. Nasdaq’s contracts are currently awaiting SEC approval.