The Nasdaq stock exchange wants to list binary options tied to its flagship stock index, a move that will let traders make “yes” or “no” bets on the direction of major equity benchmarks such as the Nasdaq 100.
In a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the exchange said it also plans to offer binary options on the Nasdaq 100 Micro Index.
Binary options are bets that have only two outcomes. Either the conditions are met and the bettor makes a profit, or the option expires worthless. Nasdaq’s proposed contract would be priced between 1 cent and $1, reflecting the market’s view of the probability of a particular outcome.
If approved, the products would function similarly to contracts on prediction market platforms such as Polymarket and Kalshi, providing traders with a new way to express short-term views on the performance of one of the market’s most closely watched stock indexes.
The filing marks Nasdaq’s entry into a rapidly growing corner of the derivatives market that blends traditional finance with the mechanics of prediction platforms. As interest in event-based trading surges, rival exchange Cboe has also announced plans to expand into prediction markets.
With platforms like Polymarket and Kalshi growing rapidly, users can trade based on the outcome of events ranging from elections to economic data releases. These platforms are regulated by the Commodity Futures Trading Commission (CFTC) because they offer event contracts tied to real-world outcomes.
However, binary options fall under the jurisdiction of the SEC. Nasdaq’s proposal highlights how established exchanges are seeking to adapt predictive formats to regulated securities markets. Nasdaq had not responded to a request for comment as of press time.
Cryptocurrency exchanges also moved quickly.
Coinbase recently launched prediction markets on its platform, giving digital asset traders access to contracts related to political, economic and cultural events. Gemini received CFTC approval in December to operate as a designated contract market (DCM), allowing the company to offer regulated prediction markets to U.S. customers.