Nasdaq follows Cboe joining world of 'binary bets' as prediction market craze hits Wall Street

The Nasdaq stock exchange has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to list binary options tied to its flagship indexes, including the Nasdaq-100 and the Nasdaq-100 Micro Index. These binary options function as yes-or-no bets, where traders profit if a specific condition is met or lose everything if it expires worthless, with contracts priced based on perceived probability. This move signifies Nasdaq's entry into the growing derivatives segment that blends traditional finance with prediction market mechanics, similar to platforms like Polymarket and Kalshi, though these options fall under SEC jurisdiction, unlike CFTC-regulated event contracts. Rival exchange Cboe is also expanding into prediction markets, highlighting a trend where established exchanges are adapting event-based trading formats for regulated securities markets.

(Source：CoinDesk)