Nasdaq Proposes SEC Approval for Binary Options Based on Nasdaq-100 Indexes
Nasdaq aims to launch a new event-driven trading product with binary options linked to Nasdaq-100 indexes, pending SEC approval, expanding into prediction-market-style offerings.
Fact Check
Multiple credible and directly relevant sources, including a Bloomberg news report and coverage on Nasdaq-affiliated sites, affirm that Nasdaq has filed a request with the U.S. Securities and Exchange Commission to list yes/no or binary options tied to its stock indexes, such as the Nasdaq 100. These reports describe it as a formal rule-change proposal—an official step requiring SEC approval. Bloomberg’s reporting, known for its reliability in financial and regulatory matters, strongly supports the claim’s validity. Supplementary articles on Nasdaq’s own website and other outlets summarize the same SEC submission. No authoritative sources contradict or refute this information. Although the CFTC site itself does not explicitly confirm or deny the filing, its jurisdictional separation from SEC matters does not undermine the evidence. Therefore, the statement that Nasdaq submitted an SEC request to list binary options based on its stock indexes is highly likely to be true.
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Summary
Nasdaq has filed a proposal with the SEC to introduce binary options tied to the Nasdaq-100 and Nasdaq-100 Micro Indexes. The Outcome Related Options, priced from $0.01 to $1, will allow investors to place bets on specific market outcomes. If approved, the product will mark Nasdaq’s entry into prediction-market-style trading, a growing trend also seen on platforms like Cboe, Coinbase, and Gemini.
Terms & Concepts
- Binary Options: A derivative contract that pays a fixed amount if a predefined condition is met at expiration and expires worthless if the condition is not satisfied.
- Prediction Markets: Trading platforms where participants buy and sell contracts tied to the outcome of specific events, reflecting collective probability assessments.
- CFTC (Commodity Futures Trading Commission): The U.S. regulator overseeing futures, options, and certain event-based contracts, including many prediction market platforms.