Nasdaq is venturing into prediction markets, planning to launch binary options on the CSI 100 index.

PANews reported on March 2nd that Nasdaq plans to launch an options contract that allows "yes or no" bets on major stock indices, becoming the latest exchange operator to enter the rapidly growing prediction market. According to a proposed rule change submitted to the U.S. Securities and Exchange Commission (SEC), the company hopes to list "binary options" on its flagship Nasdaq 100 and Nasdaq 100 Mini indices. The filing shows that Nasdaq contracts will be priced between 1 cent and $1, reflecting market perceptions of the likelihood of a particular outcome. This will be Nasdaq's first foray into mirror prediction market products. These so-called "outcome-related options" will allow traders to take binary positions on whether a specific event occurs. Binary options are a simplified version of options contracts where payouts depend on the outcome of a "yes or no" proposition. Financial contracts listed in the prediction market industry cover sports, politics, and popular culture. Unlike event contracts regulated by the Commodity Futures Trading Commission (CFTC) at Kalshi, Polymarket US, and the CME Group, binary options are regulated by the SEC. Nasdaq's contract is currently awaiting SEC approval.