Nasdaq files to launch binary options on major indexes
6.9 Investments Nasdaq seeks SEC approval to launch binary options on its indexes, mirroring prediction markets and meeting demand for short-term, outcome-based trading.
Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to introduce binary options linked to its major stock indexes, including the Nasdaq-100 and its micro version. These binary options are structured as yes-or-no contracts, enabling traders to bet on specific outcomes with contract prices ranging from one cent to one dollar. If the predicted condition is met, traders receive a fixed payout; otherwise, the contract expires worthless. The pricing mechanism reflects market-implied probabilities, similar to those used by prediction market platforms such as Polymarket and Kalshi. This initiative marks Nasdaq's entry into the expanding prediction markets sector, providing new tools for speculation and risk management. The proposal, currently under SEC review, aligns with industry trends as other exchanges like Cboe prepare similar event-driven products to meet growing demand for short-duration, outcome-based trading instruments.
