Nasdaq Ventures into Prediction Markets, Plans to Launch S&P 100 Index Binary Options

On March 2, Nasdaq plans to launch an options contract enabling traders to bet on major stock indices via "yes-or-no" propositions—making it the latest exchange operator to enter the fast-growing prediction market. Per a rule change proposal filed with the U.S. Securities and Exchange Commission (SEC), the exchange intends to list "binary options" tied to its flagship Nasdaq 100 Index and Nasdaq 100 Micro Index. The filing notes Nasdaq’s contracts will be priced between $0.01 and $1, reflecting market expectations for the likelihood of a given outcome. This marks the exchange’s first entry into mirror prediction market products—dubbed "outcome-related options"—which let traders take binary positions on whether a specific event will occur. Binary options are simplified options contracts where payouts hinge on a "yes-or-no" proposition. Prediction market firms list contracts tied to sports, politics, and pop culture, but unlike event contracts from Kalshi, Polymarket US, and CME Group (regulated by the U.S. Commodity Futures Trading Commission), binary options fall under SEC oversight. Nasdaq’s contracts are currently pending SEC approval.