What are Nasdaq's new proposed prediction market options?

Nasdaq is seeking approval to list "Outcome-Related Options" on its Nasdaq 100 and Nasdaq 100 micro indexes, which are binary contracts allowing traders to bet on specific event outcomes.

How will these binary options be priced?

The proposed binary options will be priced between 1 cent and $1, offering a payout based on a yes-or-no bet outcome.

Which companies are included in the Nasdaq 100 index?

The Nasdaq 100 index tracks 100 of the largest non-financial companies listed on Nasdaq's exchange.

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Nasdaq Aims for Prediction Markets Approval

2 Mar

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Summary

Nasdaq seeks SEC approval for prediction market options.
Options will be on Nasdaq 100 and micro index.
Binary options allow betting on yes-or-no event outcomes.

Nasdaq Aims for Prediction Markets Approval

Nasdaq has filed for U.S. Securities and Exchange Commission approval to introduce prediction market options on its Nasdaq 100 and Nasdaq 100 micro indexes. These proposed "Outcome-Related Options" will function as binary contracts, enabling traders to wager on specific yes-or-no event outcomes.

The options are intended to be priced between $0.01 and $1.00. The Nasdaq 100 index comprises 100 of the largest non-financial companies listed on Nasdaq.

Nasdaq's foray into prediction markets follows a surge in mainstream interest in these platforms, particularly around real-world events like political races. While CME Group has actively pursued this market, other SEC-regulated exchanges like Nasdaq and Cboe are taking a more measured approach due to the evolving regulatory landscape.

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