Nasdaq Expanding into prediction markets, the company plans to launch binary options on the 100 Index
Svmuu News Nasdaq The company plans to launch options contracts that allow “yes or no” bets on major stock indices, becoming the latest exchange operator to enter the rapidly growing prediction market.According to a proposed rule change 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 contracts will be priced between 1 cent and $1, reflecting market views on the likelihood of a particular outcome.This will mark Nasdaq’s first foray into products based on mirror prediction markets. These so-called “outcome-linked options” will allow traders to take binary positions on whether specific events will occur. Binary options are a simplified version of options contracts, where payouts depend on the outcome of a “yes or no” proposition.Financial contracts listed in the prediction markets industry cover sports, politics, and pop culture. Unlike event contracts on Kalshi, Polymarket US, and CME Group—which are regulated by the U.S. Commodity Futures Trading Commission—binary options are regulated by the U.S. Securities and Exchange Commission. Nasdaq’s contracts are currently awaiting SEC approval. (Jin Shi)
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