Nasdaq ventures into the prediction market, plans to launch 100 index binary options
According to Jinshi reports, Nasdaq plans to launch an options contract that allows "yes or no" betting on major stock indices, becoming the latest exchange operator to enter the rapidly growing prediction market.
According to a rule change proposal submitted to 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.
Documents show that the pricing of Nasdaq contracts will range from $0.01 to $1, reflecting the market's view on the likelihood of a certain outcome occurring. This will be Nasdaq's first foray into products related to mirror prediction markets. These so-called "outcome-related options" will allow traders to take binary positions on whether specific events will occur.
Binary options are a simplified version of options contracts, with payouts depending on the outcome of a "yes or no" proposition. Financial contracts listed in the prediction market industry involve sports, politics, and popular culture. Unlike event contracts regulated by the U.S. Commodity Futures Trading Commission, such as those from Kalshi, Polymarket US, and the Chicago Mercantile Exchange, binary options are regulated by the U.S. Securities and Exchange Commission. Nasdaq's contracts are currently awaiting SEC approval.
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