Nasdaq Submits Application for Binary Options on Nasdaq-100 Index Following Prediction Market Trend
This new product would allow market participants to place wagers on major Nasdaq-100 tech stocks including Nvidia, Apple, Google and Tesla through binary-style contracts.
Nasdaq MRX, an options exchange operated by Nasdaq, has submitted an application to introduce binary-style contracts settled in cash based on the Nasdaq-100 Index, joining a growing number of traditional Wall Street institutions exploring opportunities in the prediction market sector.
The company operating the world's second-largest stock exchange by market capitalization seeks approval to launch "Outcome Related Options" designed for binary wagers, with pricing ranging from 1 cent to $1, as detailed in documentation submitted to the US Securities and Exchange Commission this past Monday.
The proposed product would enable market participants to engage in binary trading positions on events connected to the Nasdaq-100 and Nasdaq-100 Micro indexes — specifically excluding outcomes tied to alternative categories such as sporting events, cultural matters and political developments.
Among the most prominent companies listed in the Nasdaq-100 are Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), Meta (META) and Tesla (TSLA).
If granted SEC authorization, Nasdaq could enter a rapidly expanding marketplace where platforms such as Polymarket and Kalshi already operate, and where cryptocurrency exchanges including Coinbase and Crypto.com are also incorporating prediction market functionality into their services.
Additional traditional finance institutions, including the Intercontinental Exchange, CME Group and Cboe Global Markets have similarly made investments in this sector or publicly indicated plans to introduce their own prediction market-style products.
Through its partnership with American betting operator FanDuel, CME Group will allow users to place wagers on markets extending beyond traditional finance, whereas Cboe's planned product line will concentrate specifically on financial and economic contracts.
Digital asset management firm Bitwise additionally submitted a filing with the SEC during the previous month seeking authorization to introduce "PredictionShares" exchange-traded funds designed to hold event contracts related to the 2028 US presidential election, with both GraniteShares and Roundhill submitting comparable applications during February.
The prediction markets category emerged as one of the most popular applications in cryptocurrency during the past year and have maintained monthly trading volumes exceeding $10 billion on a consistent basis. Both Polymarket and Kalshi have pursued aggressive marketing campaigns targeting retail customers in recent months even as certain regulatory authorities have attempted to impose restrictions on the sector.
Nasdaq seeks to deploy its prediction product across multiple platforms
Beyond Nasdaq MRX, the company also intends to make Outcome Related Options available through additional Nasdaq options trading venues, specifically Nasdaq NOM and Nasdaq PHLX.
While Nasdaq MRX operates on a first-come, first-served basis and does not provide trading incentives to participants, both Nasdaq NOM and Nasdaq PHLX utilize pricing structures that have the capability to compensate market participants for contributing liquidity to the platform.