The Nasdaq stock exchange wants to include binary options linked to its flagship stock indices, a move that would allow traders to place yes-or-no bets on the direction of major stock benchmarks like the Nasdaq-100.
In a Monday filing with the U.S. Securities and Exchange Commission (SEC), the exchange said it also plans to offer binary options on the Micro Nasdaq-100 index.
A binary option is a bet with only two outcomes. Either the condition is met and the bettor makes a profit, or the option expires worthless. Nasdaq’s proposed contracts would be priced between 1 cent and $1, reflecting the market’s view of the likelihood of a specific outcome occurring.
If approved, the products would function similarly to contracts on prediction market platforms such as Polymarket and Kalshi, giving traders a new way to express short-term opinions on the performance of one of the market’s most followed stock indices.
The filing marks Nasdaq’s entry into a fast-growing corner of the derivatives markets that combines traditional finance with the mechanics of prediction platforms. Rival exchange Cboe also announced plans to expand into the prediction markets business as interest in event-based trading has increased.
That momentum follows the rapid growth of platforms like Polymarket and Kalshi, which allow users to trade the results of events ranging from elections to the release of economic data. Those 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 underscores how established exchanges are seeking to adapt the prediction-style format to regulated securities markets. Nasdaq had not responded to a request for comment at the time of this publication.
Crypto exchanges have also moved quickly.
Coinbase recently launched prediction markets on its platform, giving digital asset traders access to contracts linked to political, economic and cultural events. Gemini received approval from the CFTC in December to operate as a Designated Contracts Market (DCM), allowing the company to offer regulated prediction markets to US clients.
