Nasdaq has formally filed with the U.S. Securities and Exchange Commission seeking approval to launch binary, yes-or-no style options linked to its flagship Nasdaq-100, according to Bloomberg. The proposal introduces a new category of contracts called “Outcome Related Options,” structured around both the Nasdaq-100 and its micro version, marking the exchange’s first direct step into products that closely resemble prediction markets.
Under the filing, the contracts would trade between $0.01 and $1, with pricing fluctuating based on perceived probability of a defined outcome. If the condition is met, the contract settles at $1; if not, it expires worthless. The structure mirrors the probability-based mechanics seen on platforms like Polymarket and Kalshi, where binary event contracts have gained significant traction.
Cboe Global Markets has indicated it is exploring a revival of all-or-nothing binary options tied to financial benchmarks, while CME Group continues expanding its derivatives footprint amid rising demand for round-the-clock access, particularly in crypto markets. The competitive landscape suggests traditional exchanges are responding directly to the explosive growth of retail-accessible prediction platforms.
Regulatory scrutiny is simultaneously intensifying. Earlier this month, Paul Atkins described prediction markets as a “huge issue,” highlighting potential jurisdictional overlap between the SEC and the CFTC. Nasdaq’s filing therefore lands at a pivotal moment, as regulators attempt to define boundaries between securities-based binary options and event contracts treated as commodities derivatives.
Source: Bloomberg report on Nasdaq’s SEC filing
Disclaimer: This content is for informational purposes only and does not constitute financial advice or an investment recommendation. Trading derivatives and event-based contracts involves substantial risk and may not be suitable for all investors.
