Nasdaq Files for Binary Options on Nasdaq-100 as Prediction Markets Surge
Nasdaq has submitted a groundbreaking filing with the SEC to introduce binary "yes or no" options tied to the Nasdaq-100 index. These "Outcome Related Options" will trade between $0.01 and $1, settling at $1 if the predicted outcome occurs—mirroring the mechanics of prediction market platforms like Polymarket and Kalshi.
The MOVE comes as combined monthly volumes on prediction platforms Kalshi and Polymarket reached $18.4 billion in February, marking six consecutive months of record activity. Traditional exchanges including Cboe and CME are similarly expanding into event-driven derivatives, signaling institutional validation of prediction market structures.
SEC Chair Paul Atkins has flagged regulatory concerns, noting potential jurisdictional overlap between the SEC and CFTC. Meanwhile, crypto-native platforms continue to dominate the space, with Polymarket's volume growing 240% year-over-year.
