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Nasdaq Aims for Prediction Markets Approval
2 Mar
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 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.
